##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 20-F
 
  o
    
    Registration statement pursuant to Section 12(b) or 12(g) of the Securities
Exchange Act of 1934
 or
 þ
    
    Annual report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
 for the fiscal year ended December 31, 2008
 or
 o
    
    Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
 for the transition period from
 _____ 
to
 _____
 or
 o
    
    Shell Company Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
 Date of the event requiring this shell company report.
 Commission
file number: 001-32827
 BANCO MACRO S.A.
  Macro Bank, Inc.
  Argentina    Sarmiento 447, City of Buenos Aires, Argentina
 
 th     (Name, telephone, e-mail and/or facsimile member and address of
company contact person)
 Title of Each Class
    
    Name of Each Exchange On Which RegisteredAmerican Depositary Shares
    
    New York Stock ExchangeClass B ordinary shares, par value Ps. 1.00 per share
    
    New York Stock Exchange(*)9.75% Fixed/Floating Rate Non-CumulativeJunior Subordinated Bonds Due 20368.50% Notes Due 201710.750% Argentine Peso-Linked Notes Due 2012
 
 (*)
    
    Ordinary shares of Banco Macro S.A. are not listed for trading but only in connection
with the registration of American Depositary Shares which are evidenced by American
Depositary Receipts. 
  None
  9.75% Fixed/Floating Rate Non-Cumulative Junior Subordinated Bonds Due 2036
 8.50% Notes Due 2017
 10.750% Argentine Peso-Linked Notes Due 2012
  11,235,670 Class A ordinary shares, par value Ps. 1.00 per share
597,201,785 Class B ordinary shares, par value Ps. 1.00 per share
 
  o þ
  o þ
  þ o
  o o
  þ o o
  U.S. GAAP o
    
    International Financial Reporting
Standards as issued by the International 

Accounting Standards Board o
    
    Other þ
   o þ
  o þ
   o o
 Please send copies of notices and communications from the Securities and Exchange Commission to:
 Hugo N. L. Bruzone, Esq.
    
    Antonia E. Stolper, Esq.Bruchou, Fernández Madero& Lombardi
    
    Shearman & Sterling LLPIng. Butty 275, 12thFloor
    
    599 Lexington AvenueC1001AFA  Buenos Aires, Argentina
    
    New York, New York 10022




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##### 



Table of Contents
 PagePART I
    
    
    3Item 1. Identity of Directors, Senior Management and Advisers
    
    
    3Item 2. Offer Statistics and Expected Timetable
    
    
    3Item 3. Key Information
    
    
    3Item 4. Information on the Company
    
    
    16Item 5. Operating and Financial Review and Prospects
    
    
    56Item 6. Directors, Senior Management and Employees
    
    
    74Item 7. Major Shareholders and Related Party Transactions
    
    
    83Item 8. Financial Information
    
    
    85Item 9. The Offer and Listing
    
    
    86Item 10. Additional Information
    
    
    88Item 11. Quantitative and Qualitative Disclosure About Market Risk
    
    
    97Item 12. Description of Securities Other Than Equity Securities
    
    
    98PART II
    
    
    98Item 13. Defaults, Dividend Arrearages and Delinquencies
    
    
    98Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
    
    
    98Item 15. Controls and Procedures
    
    
    98Item 16A. Audit Committee Financial Expert
    
    
    100Item 16B. Code of Ethics
    
    
    100Item 16C. Principal Accountant Fees and Services
    
    
    100Item 16D. Exemptions from the Listing Standards for Audit Committees
    
    
    101Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
    
    
    101Item 16G. Comparison of New York stock exchange corporate governance standards and Argentine corporate governance practices
    
    
    103PART III
    
    
    106Item 17. Financial Statements
    
    
    106Item 18. Financial Statements
    
    
    106Item 19. Exhibits
    
    
    106Exhibit 1.1Exhibit 12.1Exhibit 12.2Exhibit 13.1Exhibit 13.2




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Certain defined terms
 "
 " Banco Central de la República Argentina, " " " " " " " "
 Presentation of certain financial and other information. Accounting practices
   www.bcra.gov.ar
 Rounding
  Market position
  Our internet site is not part of this annual report
 www.macro.com.ar
  1




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Cautionary statement concerning forward-looking statements
  
    
    changes in general economic, business, political, legal, social or other conditions in
Argentina;
 
    
    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 industries;
 
    
    deterioration in regional and national business and economic conditions in Argentina;
 
    
    fluctuations and declines in the exchange rate of the peso; and
 
    
    the risk factors discussed under Item 3.D  Risk factors.
  
  2




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##### Table of Contents



PART I
 
 Item 1. Identity of Directors, Senior Management and Advisers
  
 Item 2. Offer Statistics and Expected Timetable
  
 Item 3. Key Information
 A. Selected Financial Data
     Year Ended December 31,2004 (1)
    
    
    2005
    
    
    2006 (2) (3)
    
    
    2007 (2)
    
    
    2008(in thousands of pesos, except for shares,earnings per share and dividends per share)Consolidated Income StatementCentral Bank Rules:Financial income
    
    
    427,891
    
    
    
    749,583
    
    
    
    1,155,207
    
    
    
    1,890,422
    
    
    
    3,029,860Financial expense
    
    
    (133,204
    )
    
    
    (302,909
    )
    
    
    (394,897
    )
    
    
    (805,265
    )
    
    
    (1,342,062
    )Gross intermediation margin
    
    
    294,687
    
    
    
    446,674
    
    
    
    760,310
    
    
    
    1,085,157
    
    
    
    1,687,798Provision for loan losses
    
    
    (36,467
    )
    
    
    (70,309
    )
    
    
    (59,773
    )
    
    
    (94,717
    )
    
    
    (297,606
    )Service charge income
    
    
    154,425
    
    
    
    302,758
    
    
    
    452,232
    
    
    
    662,326
    
    
    
    891,700Service charge expense
    
    
    (24,963
    )
    
    
    (59,510
    )
    
    
    (93,323
    )
    
    
    (150,282
    )
    
    
    (172,401
    )Administrative expense
    
    
    (254,936
    )
    
    
    (443,026
    )
    
    
    (651,000
    )
    
    
    (953,897
    )
    
    
    (1,211,399
    )Other income
    
    
    109,581
    
    
    
    218,884
    
    
    
    234,807
    
    
    
    183,525
    
    
    
    188,450Other expense
    
    
    (48,651
    )
    
    
    (98,683
    )
    
    
    (138,774
    )
    
    
    (142,484
    )
    
    
    (161,931
    )Income Tax
    
    
    (699
    )
    
    
    (34,042
    )
    
    
    (76,961
    )
    
    
    (92,345
    )
    
    
    (261,207
    )Monetary Loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Minority Interest
    
    
    
    
    
    
    
    
    
    
    (3,178
    )
    
    
    (2,083
    )
    
    
    (3,354
    )Net income
    
    
    192,977
    
    
    
    262,746
    
    
    
    424,340
    
    
    
    495,200
    
    
    
    660,050Net income per share (4)
    
    
    0.32
    
    
    
    0.43
    
    
    
    0.64
    
    
    
    0.72
    
    
    
    1.00Dividends per share
    
    
    0.10
    
    
    
    0.05
    
    
    
    0.10
    
    
    
    0.15
    
    
    
    0.28Dividends
per share in US$
    
    
    0.03
    
    
    
    0.02
    
    
    
    0.03
    
    
    
    0.05
    
    
    
    0.08Number of shares outstanding (in
thousands)
    
    
    608,943
    
    
    
    608,943
    
    
    
    683,943
    
    
    
    683,979
    
    
    
    608,437U.S. GAAP: (5)Net income before extraordinary items
    
    
    94,229
    
    
    
    463,795
    
    
    
    357,959
    
    
    
    384,040
    
    
    
    628,243Extraordinary Gain
    
    
    
    
    
    
    
    
    
    
    41,705
    
    
    
    
    
    
    
    Net income
    
    
    94,229
    
    
    
    463,795
    
    
    
    399,664
    
    
    
    384,040
    
    
    
    628,243Net income per share before
extraordinary item(s)
    
    
    0.15
    
    
    
    0.76
    
    
    
    0.54
    
    
    
    0.56
    
    
    
    0.95Net income
per share for extraordinary gain
    
    
    
    
    
    
    
    
    
    
    0.06
    
    
    
    
    
    
    
    Total net income per share (6)
    
    
    0.15
    
    
    
    0.76
    
    
    
    0.60
    
    
    
    0.56
    
    
    
    0.95Weighted average number of shares
outstanding (in thousands)
    
    
    608,943
    
    
    
    608,943
    
    
    
    666,478
    
    
    
    683,952
    
    
    
    658,124
 (1)
    
    Nuevo Banco Suquía merged with and into Banco Macro from December 22, 2004.(2)
    
    See note 4.2 to our audited consolidated financial statements for the year ended December 31,
2008.(3)
    
    Banco del Tucumán and Nuevo Banco Bisel consolidated with Banco Macro from May 5, 2006 and
August 11, 2006, respectively.(4)
    
    Net income in accordance with Central Bank rules divided by weighted average number of
outstanding shares.(5)
    
    See note 35 to our audited consolidated financial statements for the year ended December 31,
2008 for a summary of significant differences between Central Bank Rules and U.S. GAAP.(6)
    
    Net income in accordance with U.S. GAAP divided by weighted average number of outstanding
shares.  3




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As of December 31,(in thousands of pesos)2004 (1)
    
    
    2005
    
    
    2006 (2) (3)
    
    
    2007 (2)
    
    
    2008Consolidated
Balance SheetCentral Bank Rules:AssetsCash and due
from banks
    
    
    1,372,261
    
    
    
    1,189,129
    
    
    
    2,626,908
    
    
    
    3,117,426
    
    
    
    3,523,897Government
and private securities
    
    
    2,106,737
    
    
    
    2,991,764
    
    
    
    3,222,955
    
    
    
    3,950,725
    
    
    
    4,779,299Loans:to the
non-financial
government
sector
    
    
    809,577
    
    
    
    645,342
    
    
    
    774,273
    
    
    
    732,481
    
    
    
    744,507to the financial
sector
    
    
    81,812
    
    
    
    80,511
    
    
    
    436,930
    
    
    
    161,702
    
    
    
    80,423to the
non-financial
private sector
and foreign
residents
    
    
    2,208,996
    
    
    
    2,948,799
    
    
    
    5,524,483
    
    
    
    9,335,656
    
    
    
    10,893,376Allowances for loan
losses
    
    
    (225,340
    )
    
    
    (247,532
    )
    
    
    (208,581
    )
    
    
    (220,422
    )
    
    
    (438,348
    )Other assets
    
    
    2,443,714
    
    
    
    1,879,809
    
    
    
    2,100,872
    
    
    
    2,640,664
    
    
    
    2,841,843Total assets
    
    
    8,797,757
    
    
    
    9,487,822
    
    
    
    14,477,840
    
    
    
    19,718,232
    
    
    
    22,424,997Average assets
    
    
    5,705,542
    
    
    
    9,357,401
    
    
    
    11,791,622
    
    
    
    17,686,455
    
    
    
    21,860,677Liabilities and
shareholders
equityDeposits:from the
non-financial
government
sector
    
    
    809,764
    
    
    
    822,687
    
    
    
    1,295,630
    
    
    
    1,774,121
    
    
    
    3,937,961from the
financial sector
    
    
    4,445
    
    
    
    5,208
    
    
    
    5,078
    
    
    
    13,310
    
    
    
    22,438from the
non-financial
private sector
    
    
    4,504,788
    
    
    
    5,737,431
    
    
    
    8,770,309
    
    
    
    11,803,718
    
    
    
    11,867,958Other liabilities
from financial
intermediation and
other liabilities
    
    
    1,974,786
    
    
    
    1,241,793
    
    
    
    1,426,047
    
    
    
    2,813,065
    
    
    
    3,157,646Subordinated
corporate bond
    
    
    16,416
    
    
    
    12,047
    
    
    
    507,844
    
    
    
    490,695
    
    
    
    521,681Items pending
allocation
    
    
    4,554
    
    
    
    854
    
    
    
    2,052
    
    
    
    1,644
    
    
    
    2,105Provisions
    
    
    225,699
    
    
    
    178,150
    
    
    
    77,738
    
    
    
    101,333
    
    
    
    83,004Minority interest
in subsidiaries
    
    
    3
    
    
    
    
    
    
    
    78,045
    
    
    
    12,640
    
    
    
    15,607Total liabilities
    
    
    7,540,455
    
    
    
    7,998,170
    
    
    
    12,162,743
    
    
    
    17,010,526
    
    
    
    19,608,400Shareholders equity
    
    
    1,257,302
    
    
    
    1,489,652
    
    
    
    2,315,097
    
    
    
    2,707,706
    
    
    
    2,816,597Average
shareholders
equity
    
    
    1,179,611
    
    
    
    1,333,163
    
    
    
    1,915,245
    
    
    
    2,456,353
    
    
    
    2,773,259U.S. GAAP: (4)Shareholders equity
    
    
    857,666
    
    
    
    1,191,692
    
    
    
    1,956,242
    
    
    
    2,222,361
    
    
    
    2,221,199
 (1)
    
    Nuevo Banco Suquía merged with and into Banco Macro from December 22, 2004.(2)
    
    See note 4.2 to our audited consolidated financial statements for the year ended on December
31, 2008.(3)
    
    Banco del Tucumán and Nuevo Banco Bisel consolidated with Banco Macro from May 5, 2006 and
August 11, 2006, respectively.(4)
    
    See note 35 to our audited consolidated financial statements for the year ended on December
31, 2008 for a summary of significant differences between Central Bank Rules and U.S. GAAP.  4




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As of and for the year ended December 31,2004 (1)
    
    
    2005
    
    
    2006 (2) (3)
    
    
    2007 (2)
    
    
    2008Selected consolidated ratios:Profitability and performanceNet interest margin (%) (4)
    
    
    6.37
    
    
    
    5.23
    
    
    
    7.11
    
    
    
    6.85
    
    
    
    7.93Fee income ratio (%) (5)
    
    
    34.38
    
    
    
    40.40
    
    
    
    37.30
    
    
    
    37.90
    
    
    
    34.57Efficiency ratio (%) (6)
    
    
    56.77
    
    
    
    59.11
    
    
    
    53.69
    
    
    
    54.59
    
    
    
    46.96Ratio of earnings to fixed charges (excluding interest
on deposits) (7)
    
    
    5.69
    x
    
    
    3.01
    x
    
    
    6.76
    x
    
    
    4.28
    x
    
    
    6.00
    xRatio of earnings to fixed charges (including interest
on deposits) (8)
    
    
    3.02
    x
    
    
    2.14
    x
    
    
    2.49
    x
    
    
    1.88
    x
    
    
    1.80
    xFee income as a percentage of administrative expense
(%)
    
    
    60.56
    
    
    
    68.34
    
    
    
    69.47
    
    
    
    69.43
    
    
    
    73.61Return on average equity (%)
    
    
    16.36
    
    
    
    19.71
    
    
    
    22.16
    
    
    
    20.16
    
    
    
    23.80Return on average assets (%)
    
    
    3.38
    
    
    
    2.81
    
    
    
    3.60
    
    
    
    2.80
    
    
    
    3.02LiquidityLoans as a percentage of total deposits (%)
    
    
    58.29
    
    
    
    55.97
    
    
    
    66.88
    
    
    
    75.27
    
    
    
    74.03Liquid assets as a percentage of total deposits (%) (9)
    
    
    53.69
    
    
    
    58.64
    
    
    
    61.92
    
    
    
    51.25
    
    
    
    48.80CapitalTotal equity as a percentage of total assets (%)
    
    
    14.29
    
    
    
    15.70
    
    
    
    15.99
    
    
    
    13.73
    
    
    
    12.56Regulatory capital as a percentage of risk-weighted
assets (%)
    
    
    35.71
    
    
    
    31.03
    
    
    
    31.31
    
    
    
    26.81
    
    
    
    22.95Asset QualityNon-performing loans as a percentage of total loans
(%) (10)
    
    
    6.50
    
    
    
    5.34
    
    
    
    2.01
    
    
    
    1.55
    
    
    
    2.64Allowances as a percentage of total loans
    
    
    7.27
    
    
    
    6.74
    
    
    
    3.10
    
    
    
    2.15
    
    
    
    3.74Allowances as a percentage of non-performing loans (%)
(10)
    
    
    111.75
    
    
    
    126.20
    
    
    
    154.25
    
    
    
    138.77
    
    
    
    141.81Differences due to court orders (Amparos)as a
percentage of equity (%)
    
    
    4.0
    
    
    
    2.90
    
    
    
    3.23
    
    
    
    3.73
    
    
    
    1.26OperationsNumber of branches
    
    
    256
    
    
    
    254
    
    
    
    433
    
    
    
    427
    
    
    
    416Number of employees
    
    
    4,772
    
    
    
    5,054
    
    
    
    7,585
    
    
    
    7,868
    
    
    
    7,973
 (1)
    
    Nuevo Banco Suquía merged with and into Banco Macro from December 22, 2004.(2)
    
    See note 4.2 to our audited consolidated financial statement for the year ended on December
31, 2008.(3)
    
    Banco del Tucumán and Nuevo Banco Bisel consolidated with Banco Macro from May 5, 2006 and
August 11, 2006, respectively.(4)
    
    Net interest income divided by average interest earning assets.(5)
    
    Service charge income divided by the sum of gross intermediation margin and service charge
income.(6)
    
    Administrative expenses divided by the sum of gross intermediation margin and service charge
income.(7)
    
    For the purpose of computing the ratio of earnings to fixed charges excluding interest on
deposits, earnings consist of income before income taxes plus fixed charges; fixed charges
excluding interest on deposits consist of gross interest expense minus interest on deposits.(8)
    
    For the purpose of computing the ratio of earnings to fixed charges including interest on
deposits, earnings consist of income before income taxes plus fixed charges; fixed charges
including gross interest on deposits is equal to interest expense.(9)
    
    Liquid assets include cash, cash collateral, LEBACs and NOBACs, interbank loans and
overnight loans to highly rated companies.(10)
    
    Non-performing loans include all loans to borrowers classified as 3-with problems/medium
risk, 4-with high risk of insolvency/high risk, 5-irrecoverable and 6-irrecoverable by
technical decision under the Central Bank loan classification system. B. Capitalization and Indebtedness
  C. Reasons for the Offer and Use of Proceeds
   5




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D. Risk Factors
 You should carefully consider the risks described below with all of the other information included
in the annual report before deciding to invest in our Class B shares or our ADSs or our notes. If
any of the following risks actually occur, they may materially harm our business and our financial
condition and results of operations. As a result, the market price of our Class B shares or our
ADSs or our notes could decline and you could lose part or all of your investment.
 Investors should carefully read this annual report in its entirety. They should also take into
account and evaluate, among other things, their own financial circumstances, their investment
goals, and the following risk factors.
 Risks relating to Argentina
 Argentinas current growth and stabilization may not be sustainable
  
    
    the availability of long-term fixed rate credit remains low;
 
    
    investment as a percentage of GDP remains low;
 
    
    the current fiscal surplus could become a fiscal deficit;
 
    
    the current trade surplus could reverse into a trade deficit;
 
    
    inflation has risen recently and threatens to accelerate;
 
    
    the regulatory environment continues to be uncertain;
 
    
    the countrys public debt remains high and international financing is limited; and
 
    
    the recovery has depended to some extent on:
 (i)
    
    high commodity prices, which are volatile and outside the control of the country; and(ii)
    
    excess capacity, which has been reduced considerably.
  Inflation may rise again, causing adverse effects on the Argentine long-term credit markets as well
as the Argentine economy generally
   Argentinas ability to obtain financing from international markets is limited, which may impair its
ability to implement reforms and foster economic growth
   6




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Jefe de
Gabinete
 Significant devaluation of the peso against the U.S. dollar may adversely affect the Argentine
economy as well as our financial performance
    7




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Significant appreciation of the peso against the U.S. dollar may adversely affect the Argentine
economy
  Government measures to preempt, or in response to, social unrest may adversely affect the Argentine
economy
  Continuing protests by farmers could cause social unrest, influence Government measures and
ultimately affect the Argentine economy
     Exchange controls and restrictions on transfers abroad and capital inflow restrictions have
limited, and can be expected to continue to limit, the availability of international credit and may
impair our ability to make payments on our obligations
  The Argentine economy could be adversely affected by economic developments in other global markets
   8




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The elimination of the Argentine Pension Funds could adversely affect the Argentine securities
market
 Sistema Integrado Previsional Argentino
  Increased uncertainty due to the upcoming parliamentary elections could have an adverse effect on
the Argentine economy
   Risks Relating to the Argentine Financial System
 The health of Argentinas financial system depends on a return of the long-term credit market,
which is currently recovering at a relatively slow pace
   The health of the financial system depends upon the ability of financial institutions, including
us, to retain the confidence of depositors, after having overcome the 2001 crisis
   The asset quality of financial institutions, including us, is still related to the exposure to
public sector debt
  Letras del
Banco Central Notas del Banco Central
  9




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Our asset quality and that of other financial institutions may deteriorate if the Argentine private
sector is affected by the international financial crisis
   Our business may be vulnerable to the current disruptions and volatility in the global financial
markets as well as to government action intended to alleviate the effects of the current financial
crisis
    Limitations on enforcement of creditors rights in Argentina may adversely affect financial
institutions
  Risks Relating to Us
 Our target market may be the most adversely affected by economic recessions
  Our controlling shareholders have the ability to direct our business and their interests could
conflict with yours
   10




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We will continue to consider acquisition opportunities, which may not be successful
  
    
    unforeseen difficulties in integrating operations and systems;
 
    
    problems assimilating or retaining the employees of acquired businesses;
 
    
    challenges retaining customers of acquired businesses;
 
    
    unexpected liabilities or contingencies relating to the acquired businesses; and
 
    
    the possibility that management may be distracted from day-to-day business concerns by
integration activities and related problem solving.
 We depend on key personnel for our current and future performance
  Increased competition and consolidation in the banking industry may adversely affect our operations
   Reduced spreads without corresponding increases in lending volumes could adversely affect our
profitability
 
 Differences in the accounting standards between Argentina and certain countries with highly
developed capital markets, such as the United States, may make it difficult to compare our
financial statements and reported earnings with companies in other countries and the United States
  Risks relating to our Class B Shares and the ADSs
 Holders of our Class B shares and the ADSs may not receive any dividends
   11




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##### Table of Contents



Holders of our Class B shares and the ADSs located in the United States may not be able to exercise
preemptive rights
  Non-Argentine companies that own our Class B shares directly and not as ADSs may not be able to
exercise their rights as shareholders unless they are registered in Argentina
 Inspección General de Justicia,
 You may not be able to sell your ADSs at the time or the price you desire because an active or
liquid market may not develop
  The relative volatility and illiquidity of the Argentine securities markets may substantially limit
your ability to sell Class B shares underlying the ADSs at the price and time you desire
  Our shareholders may be subject to liability for certain votes of their securities
  Our
Class B shares or the ADSs might be characterized as stock in a passive foreign investment
company for U.S. federal income tax purposes
   12




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##### Table of Contents



Risks relating to our Notes
 The notes are effectively subordinated to our secured creditors and our depositors
 pari passu
 Banco Central de la República Argentina
  Exchange controls and restrictions on transfers abroad may impair your ability to receive payments
on the notes
   The notes under our medium-term note program will be subject to transfer restrictions which could
limit your ability to resell your notes
  We may redeem the notes prior to maturity
  As a financial institution, any bankruptcy proceeding against us would be subject to intervention
by the Central Bank, which may limit remedies otherwise available and extend the duration of
proceedings
  Holders of notes may find it difficult to enforce civil liabilities against us or our directors,
officers and controlling persons
 domicilio social
  13




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##### Table of Contents



Risk relating to our 9.75% Fixed/Floating Rate Non-Cumulative Junior Subordinated Bonds Due 2036
(the 2036 Notes)
 Interest on the Notes may be limited to the extent we do not have sufficient Distributable Amounts
   We may be prevented by the Central Bank or Argentine banking regulations from making interest or
other payments on or in respect of the Notes
   The Notes are unsecured and subordinated and, in the event of our bankruptcy, the Notes will rank
junior to our unsubordinated obligations and certain of our subordinated obligations
   If we do not satisfy our obligations under the 2036 Notes, your remedies will be limited
   14




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##### Table of Contents



The ratings of the Notes may be lowered or withdrawn depending on various factors, including the
rating agencys assessment of our financial strength and Argentine sovereign risk
  The U.S. federal income tax treatment of the 2036 Notes is unclear
   Risks relating to our 10.750% Argentine Peso-Linked Notes Due 2012 (the 2012 Notes)
 A devaluation of the Argentine peso will result in a loss of principal and interest in U.S. dollar
terms, which could affect our 2012 Notes
  In circumstances where we can satisfy our payment obligations in respect of the 2012 Notes by
transferring Argentine pesos to accounts located in Argentina, you may not be able to obtain U.S.
dollars or transfer funds outside Argentina
  Certain definitions
 pari passu
     15




---



##### Table of Contents



Item 4. Information on the Company
 A. History and development of the company
 Overview
 sociedades anónimas
  Our History  Banco Macro
        Banco del Tucumán
   16




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##### Table of Contents



Nuevo Banco Bisel
         B. Business Overview
 
 
    
    Ps.22,425.0 million (US$6,493.0 million) in total assets;
 
    
    Ps.10,893.4 million (US$3,154.1 million) in loans to the non-financial private sector;
 
    
    Ps.15,828.4 million (US$4,583.0 million) in total deposits;
 
    
    approximately 2,252,500 retail customers and 65,215 corporate customers that provide us
with approximately 2.3 million clients; and
 
    
    approximately 875,000 employee payroll accounts for private sector customers and
provincial governments.
  Plan Sueldo Plan Sueldo
  17




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##### Table of Contents



The Argentine economic recovery
    Our competitive strengths
  
    
    Strong financial position and consistent profitability. We believe we have emerged from
the economic crisis as one of the strongest banks in Argentina, as measured by
profitability and balance sheet strength.
 
    
    As of December 31, 2008, we have achieved profitability for the last 20 consecutive
quarters, the only bank in Argentina to do so, with a return on average equity of 16.4%,
19.7%, 22.2%, 20.2%, and 23.8% for 2004, 2005, 2006, 2007 and 2008, compared to -3.0%,
7.5%, 14.8%, 11.2% and 13.7% respectively, for the Argentine banking system as a whole.
 
    
    Our shareholders equity at December 31, 2008 and 2007, as calculated under Central
Bank Rules, was Ps. 2,816.6 million and Ps. 2,707.7 million, respectively, and our
shareholders equity under U.S. GAAP at December 31, 2008 and 2007 was Ps. 2.221.2 and
Ps.2,222.4 million, respectively.
 
    
    Strong presence in fast-growing target customer market. We have achieved a leading
position with low- and middle-income individuals and among small and medium-sized
businesses, generally located outside of the City of Buenos Aires, which have been
relatively underserved by the banking system. As of December 31, 2008, loans for less than
Ps.20,000 accounted for 40% of our total private sector loans. Based on our experience,
this target market offers significant growth opportunities and a stable base of
depositors.
 
    
    High exposure to export-led growth. Given the geographical location of the customers we
target, we have acquired banks with a large number of branches outside of the City of
Buenos Aires with the aim of completing our national coverage. Therefore, we are currently
the leading bank, based on the number of branches, in the Argentine provinces of Salta,
Jujuy, Tucumán and Misiones and one of the leading banks in Córdoba, Santa Fe, Mendoza,
Entre Ríos, Río Negro, Tierra del Fuego and Neuquén. Most of these provinces engage in
economic activities primarily concentrated in areas such as agriculture, mining, cargo
transportation, edible oils, ranching and tourism, which have been benefiting from the
export-driven growth in the Argentine economy as a result of the devaluation of the peso.
 
    
    Largest private-sector branch network in Argentina. With 416 branches, we have the most
extensive branch network among private-sector banks in Argentina. We consider our branch
network to be our key distribution channel for marketing our products and services to our
entire customer base with a personalized approach. In line with our strategy,
approximately 94% of these branches are located outside of the City of Buenos Aires,
whereas 81% of the total branches for the Argentine financial system as a whole are
located outside this area, which we believe better positions us to focus on our target
market.
  18




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##### Table of Contents




    
    Loyal customer base. We have a loyal customer base, as evidenced in part by the quick
recovery of our deposit base after the crisis. We believe that our customers are loyal to
us due to our presence in traditionally underserved markets and to our Plan Sueldo payroll
services. We have benefited from Argentine regulations that require all employees to
maintain Plan Sueldo accounts for the direct deposit of their wages. In addition, we
emphasize face-to-face relationships with our customers and offer them personalized
advice.
 
    
    Exclusive financial agent for four Argentine provinces. We perform financial agency
services for the governments of the provinces of Salta, Jujuy, Misiones and Tucumán in
northern Argentina. As a result, each provincial governments bank accounts are held in
our bank and we provide all their employees with Plan Sueldo accounts, giving us access to
substantial low cost funding and a large number of loyal customers.
 
    
    Strong and experienced management team and committed shareholders. We are led by a
committed group of shareholders who have transformed our bank from a small wholesale bank
to one of the strongest and largest banks in Argentina. Jorge Horacio Brito and Delfín
Jorge Ezequiel Carballo have active senior executive roles in our management and each
possesses more than 20 years of experience in the banking industry.
 Our strategy
    
    
    Focus on underserved markets with strong growth potential. We intend to continue
focusing on both low- and middle-income individuals and small and medium-sized businesses,
most of which have traditionally been underserved by the Argentine banking system and are
generally located outside of the City of Buenos Aires, where competition is relatively
weaker and where we have achieved a leading presence. We believe that these markets offer
attractive opportunities given the low penetration of banking services and limited
competition. We believe the provinces outside of the City of Buenos Aires that we serve
are likely to grow faster than the Argentine economy as a whole because their
export-driven economies have benefited from the devaluation of the peso and higher prices
for agricultural products and commodities.
 
    
    Further expand our customer base. We intend to continue growing our customer base,
which is essential to increasing interest and fee-based revenues. To attract new customers
we intend to:
 
    
    Utilize our extensive branch network. We intend to utilize our extensive branch
network, which we consider our key distribution channel, to market our products and
services to our entire customer base. We utilize a personalized approach to attract
new customers by providing convenient and personalized banking services close to
their homes and facilities.
 
    
    Offer medium- and long-term credit. We intend to capitalize on the increased
demand for long-term credit that we believe will accompany the expected continued
economic growth in Argentina. We intend to use our strong liquidity and our capital
base to offer a more readily available range of medium- and long-term credit
products than our competitors.
 
    
    Expand Plan Sueldo payroll services. We will continue to actively market our Plan
Sueldo payroll services, emphasizing the benefits of our extensive network for
companies with nationwide or regional needs.
 
    
    Expand our financial agency services to new provinces. We intend to take
advantage of our experience as a financial agent to provincial governments in
Argentina to expand these services into new provinces.
 
    
    Offer personalized service. We offer our clients a menu of products and
personalized, face-to-face advice to help them select the banking services that best
respond to their needs.
 
    
    Focus on efficiency and cost control. We intend to increase our efficiency. In
particular, we expect to expand lending to Nuevo Banco Bisels customers, thereby creating
new economies of scale, and reduce costs in connection with the integration of both
entities. We were upgrading our information systems and other technology to reduce further
our operating costs and to support larger transaction volumes nationally. We have
completed the integration of Nuevo Banco Suquía during the second half of 2007 and we
expect to complete the integration of Nuevo Banco Bisel during the second half of 2009.
  19




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##### Table of Contents




    
    Extend existing corporate relationships to their distributors and suppliers. We have
established relationships with major corporations in Argentina and will focus our
marketing efforts on providing services to their distributors, suppliers, customers and
employees, including providing working capital financing and Plan Sueldo payroll services.
 
    
    Increase cross-selling. We plan to increase cross-selling of products and services to
our existing clients. Since almost all of our clients have a checking and savings account,
we have a significant opportunity to expand our relationships with them through other
products such as credit cards, loans and insurance. For example, strong cross-selling
opportunities lie with our Plan Sueldo clients, of whom only 24% currently have personal
loans from us.
 Our products and services
  Retail Customers
 Overview
     Savings and checking accounts and time deposits
  Approximate numberof retail accountsProduct
    
    (as of December 31, 2008)SavingsTotal savings accounts
    
    
    1,550,151Plan Sueldo(private sector)
    
    
    577,734Plan Sueldo(public sector)
    
    
    296,973Retirees
    
    
    329,287Open market
    
    
    346,157CheckingChecking accounts
    
    
    129,370Electronic account accessDebit cards
    
    
    1,401,639
  20




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##### Table of Contents



Lending products and services
  Loans to retail customers (in pesos except where noted)(as of December 31, 2008)CreditPersonal
    
    
    Documents
    
    
    Mortgage
    
    
    
    
    
    
    Pledged
    
    
    cardloans
    
    
    (1)
    
    
    loans
    
    
    Overdrafts
    
    
    loans (2)
    
    
    loans
    
    
    OthersPercentage of gross retail private
sector loan portfolio
    
    
    64.7
    %
    
    
    5.8
    %
    
    
    7.3
    %
    
    
    3.1
    %
    
    
    3.6
    %
    
    
    13.7
    %
    
    
    1.8
    %Total customers with outstanding loans
    
    
    491,184
    
    
    
    9,763
    
    
    
    8,593
    
    
    
    198,565
    
    
    
    3,709
    
    
    
    480,976
    
    
    
    2,437Average gross loan amount
    
    
    5,698
    
    
    
    4,714
    
    
    
    49,114
    
    
    
    612
    
    
    
    54,139
    
    
    
    1,532
    
    
    
    37,017
 (1)
    
    Factoring, check cashing advances and loans with promissory notes.(2)
    
    Primarily secured auto loans.  Corporate Customers
 Overview
  Plan Sueldo payroll services
 Macrosueldos,
 Lending products and services
   21




---



##### Table of Contents



Short-term:
 Medium- to long-term:
   Loans to companies in excess ofPs.20,000, (as of December 31,2008)Percentage of(in millions of
    
    
    corporate loanpesos)
    
    
    portfolioOverdrafts
    
    
    1,409.8
    
    
    
    28.5
    %Documents (1)
    
    
    1,010.6
    
    
    
    20.4
    %Pledged loans (2)
    
    
    142.1
    
    
    
    2.9
    %Mortgage loans
    
    
    328.8
    
    
    
    6.6
    %Other (3)
    
    
    2,002.0
    
    
    
    40.5
    %Corporate credit cards
    
    
    54.0
    
    
    
    1.1
    %Total
    
    
    4,947.3
    
    
    
    100.0
    %
 (1)
    
    Factoring, check cashing advances and promissory notes.(2)
    
    Primarily securing cargo transportation equipment.(3)
    
    Mostly structured loans (medium- and long-term). Transaction services
  Payments to suppliers.
 Collection services.
 Datanet and Interpymes.
  Tax collection and financial agency services.
  22




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##### Table of Contents



Our distribution network
  As of December 31, 2008Banco MacroMarket ShareofTotal Branches% of
    
    
    inProvince
    
    Branches
    
    
    Total
    
    
    Each ProvinceCity of Buenos Aires
    
    
    24
    
    
    
    5.8
    %
    
    
    3.1
    %Buenos Aires (rest)
    
    
    52
    
    
    
    12.5
    %
    
    
    4.2
    %Catamarca
    
    
    1
    
    
    
    0.2
    %
    
    
    4.5
    %Chaco
    
    
    2
    
    
    
    0.5
    %
    
    
    3.3
    %Chubut
    
    
    4
    
    
    
    1.0
    %
    
    
    4.9
    %Córdoba
    
    
    68
    
    
    
    16.3
    %
    
    
    17.2
    %Corrientes
    
    
    3
    
    
    
    0.7
    %
    
    
    5.0
    %Entre Ríos
    
    
    6
    
    
    
    1.4
    %
    
    
    5.0
    %Formosa
    
    
    
    
    
    
    0.0
    %
    
    
    0.0
    %Jujuy
    
    
    15
    
    
    
    3.6
    %
    
    
    50.0
    %La Pampa
    
    
    2
    
    
    
    0.5
    %
    
    
    1.9
    %La Rioja
    
    
    2
    
    
    
    0.5
    %
    
    
    7.7
    %Mendoza
    
    
    13
    
    
    
    3.1
    %
    
    
    9.2
    %Misiones
    
    
    35
    
    
    
    8.4
    %
    
    
    54.7
    %Neuquén
    
    
    4
    
    
    
    1.0
    %
    
    
    5.7
    %Río Negro
    
    
    7
    
    
    
    1.7
    %
    
    
    11.1
    %Salta
    
    
    24
    
    
    
    5.8
    %
    
    
    46.2
    %San Juan
    
    
    1
    
    
    
    0.2
    %
    
    
    2.9
    %San Luis
    
    
    1
    
    
    
    0.2
    %
    
    
    2.3
    %Santa Cruz
    
    
    2
    
    
    
    0.5
    %
    
    
    5.3
    %Santa Fe
    
    
    119
    
    
    
    28.6
    %
    
    
    27.7
    %Santiago del Estero
    
    
    1
    
    
    
    0.2
    %
    
    
    2.0
    %Tierra del Fuego
    
    
    2
    
    
    
    0.5
    %
    
    
    11.8
    %Tucumán
    
    
    28
    
    
    
    6.7
    %
    
    
    45.2
    %TOTAL
    
    
    416
    
    
    
    100.0
    %
    
    
    10.4
    %
 Credit risk management
 Credit policy
  
    
    we seek to maintain a high quality portfolio that is diversified among customers;
 
    
    decisions regarding loan amounts are made following conservative parameters based upon
the customers capital, cash flow and profitability, in the case of companies, and the
customers income and asset base, in the case of individuals;
 
    
    the term of the loans offered to meet the customers needs must be appropriate for the
purpose of the loan and the customers ability to repay the loan;
 
    
    transactions must be appropriately secured according to the loans term and the level
of risk involved, and in the case of lending to small and medium-sized companies, we
request personal guarantees from the companys owners; and
 
    
    we continuously monitor credit portfolios and customer payment performance.
 Loan application process
   23




---



##### Table of Contents



Macroadelantos,
 Credit risk rating
  Credit monitoring and review process
  Technology
        
 Competition
  Banking industry
   24




---



##### Table of Contents



Scale
  2004
    
    
    2005
    
    
    2006
    
    
    2007
    
    
    2008(millions of pesos)Total Assets (1)
    
    
    200,179
    
    
    
    218,453
    
    
    
    244,070
    
    
    
    285,719
    
    
    
    333,723Total Deposits (1)
    
    
    108,151
    
    
    
    127,382
    
    
    
    155,345
    
    
    
    191,653
    
    
    
    229,090Gross Private Sector Loans (1)
    
    
    36,917
    
    
    
    47,972
    
    
    
    66,896
    
    
    
    93,091
    
    
    
    123,964
 Source: Central Bank(1)
    
    Twelve-month average. Profitability
   2004
    
    
    2005
    
    
    2006
    
    
    2007
    
    
    2008Net (loss) income (in millions of pesos)
    
    
    (657
    )
    
    
    1,932
    
    
    
    4,473
    
    
    
    3,961
    
    
    
    5,357Return on average equity
    
    
    (3
    )%
    
    
    7.5
    %
    
    
    14.8
    %
    
    
    11.2
    %
    
    
    13.7
    %Return on average assets
    
    
    (0.3
    )%
    
    
    0.9
    %
    
    
    1.8
    %
    
    
    1.4
    %
    
    
    1.6
    %
 Source: Central Bank
 Asset Quality
  2004
    
    
    2005
    
    
    2006
    
    
    2007
    
    
    2008Non-performing Credit Portfolio
    
    
    10.7
    %
    
    
    5.2
    %
    
    
    3.4
    %
    
    
    2.7
    %
    
    
    2.6
    %Non-performing Credit Portfolio  Private Sector
    
    
    18.6
    %
    
    
    7.6
    %
    
    
    4.5
    %
    
    
    3.2
    %
    
    
    3.0
    %
 Source: Central Bank
 Competitive landscape
   25




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##### Table of Contents



Market Share(% share of totalprivate sector loansPrivate Sector Loans
    
    Ps.
    
    
    for the Argentine(As of December 31, 2008)
    
    Million
    
    
    financial system)1 BANCO DE LA NACION ARGENTINA (1)
    
    
    18,949
    
    
    
    14.3
    %2 BANCO SANTANDER RIO S.A.
    
    
    13,350
    
    
    
    10.1
    %3 BANCO MACRO S.A. (2)
    
    
    10,893
    
    
    
    8.2
    %4 BBVA BANCO
FRANCES S.A.
    
    
    9,122
    
    
    
    6.9
    %5 BANCO DE LA PROVINCIA DE BUENOS AIRES (1)
    
    
    8,492
    
    
    
    6.4
    %6 BANCO DE GALICIA Y BUENOS AIRES S.A.
    
    
    8,431
    
    
    
    6.3
    %7 HSBC BANK ARGENTINA S.A.
    
    
    6,128
    
    
    
    4.6
    %8 BANCO DE LA CIUDAD DE BUENOS AIRES (1)
    
    
    5,149
    
    
    
    3.9
    %9 CITIBANK N.A
    
    
    5,131
    
    
    
    3.9
    %10 BANCO CREDICOOP COOPERATIVO LIMITADO
    
    
    4,716
    
    
    
    3.6
    %OTHERS
    
    
    42,459
    
    
    
    32.0
    %TOTAL
    
    
    132,820
    
    
    
    100.0
    %
 Source: Central Bank(1)
    
    Public sector banks.(2)
    
    From our consolidated financial statements. Market Share(% share of equityEquity
    
    Ps.
    
    
    for the Argentine(As of December 31, 2008)
    
    Million
    
    
    financial system)1 BANCO DE
LA NACION ARGENTINA (1)
    
    
    7,456
    
    
    
    18
    %2 BANCO MACRO S.A. (2)
    
    
    2,817
    
    
    
    6.8
    %3 BANCO HIPOTECARIO S.A.
    
    
    2,619
    
    
    
    6.3
    %4 BBVA BANCO FRANCES S.A.
    
    
    2,076
    
    
    
    5.0
    %5 BANCO SANTANDER RIO S.A.
    
    
    1,967
    
    
    
    4.8
    %6 BANCO DE GALICIA Y DE BUENOS AIRES S.A.
    
    
    1,955
    
    
    
    4.7
    %7 BANCO DE LA PROVINCIA DE BUENOS AIRES (1)
    
    
    1,677
    
    
    
    4.1
    %8 HSBC BANK ARGENTINA S.A.
    
    
    1,629
    
    
    
    3.9
    %9 BANCO PATAGONIA S.A.
    
    
    1,556
    
    
    
    3.8
    %10 BANCO DE LA CIUDAD DE BUENOS AIRES (1)
    
    
    1,341
    
    
    
    3.2
    %OTHERS
    
    
    16,278
    
    
    
    39.3
    %TOTAL
    
    
    41,371
    
    
    
    100.0
    %
 Source: Central Bank(1)
    
    Public sector banks.(2)
    
    From our consolidated financial statements. Market Share(% share of totalprivate sectordeposits for theTotal Deposits
    
    Ps.
    
    
    Argentine(As of December 31, 2008)
    
    Million
    
    
    financial system)1 BANCO DE
LA NACION ARGENTINA (1)
    
    
    57,018
    
    
    
    24.1
    %2 BANCO DE LA PROVINCIA DE BUENOS AIRES (1)
    
    
    22,564
    
    
    
    9.5
    %3 BBVA BANCO FRANCES S.A.
    
    
    17,282
    
    
    
    7.3
    %4 BANCO SANTANDER RIO S.A.
    
    
    16,979
    
    
    
    7.2
    %5 BANCO MACRO (2)
    
    
    15,828
    
    
    
    6.7
    %6 BANCO DE GALICIA Y DE BUENOS AIRES S.A.
    
    
    14,009
    
    
    
    5.9
    %7 HSBC BANK ARGENTINA S.A.
    
    
    10,582
    
    
    
    4.5
    %8 CITIBANK N.A.
    
    
    9,794
    
    
    
    4.1
    %9 BANCO DE
LA CIUDAD DE BUENOS AIRES (1)
    
    
    9,102
    
    
    
    3.8
    %10 BANCO CREDICOOP COOPERATIVO LIMITADO
    
    
    8,841
    
    
    
    3.7
    %OTHERS
    
    
    54,488
    
    
    
    23
    %TOTAL
    
    
    236,487
    
    
    
    100.0
    %
 Source: Central Bank(1)
    
    Public sector banks.(2)
    
    From our consolidated financial statements.  26




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##### Table of Contents



Net Income
    
    Ps.(12 months ended December 31, 2008)
    
    Million1 BANCO MACRO S.A. (2)
    
    
    6602 BANCO DE LA NACION ARGENTINA (1)
    
    
    6513 HSBC BANK ARGENTINA S.A.
    
    
    4484 BANCO SANTANDER RIO S.A.
    
    
    3475 BBVA BANCO FRANCES S.A.
    
    
    3116 BANCO DE SAN JUAN S.A.
    
    
    2767 CITIBANK N.A.
    
    
    2688 BANCO PATAGONIA S.A.
    
    
    2679 BANCO DE GALICIA Y BUENOS AIRES S.A.
    
    
    19510 NUEVO BANCO DE SANTA FE SOCIEDAD ANONIMA
    
    
    188OTHERS
    
    
    1,747TOTAL
    
    
    5,358
 Source: Central Bank(1)
    
    Public sector banks.(2)
    
    From our consolidated financial statements.   As of December 31, 2008Banking System
    
    
    
    Banco MacroMarket Share(% share oftotal # ofbranches in% of
    
    
    
    
    
    
    % of
    
    
    eachProvince
    
    Branches
    
    
    Total
    
    
    Branches
    
    
    Total
    
    
    province)CITY OF BUENOS AIRES
    
    
    777
    
    
    
    19.4
    %
    
    
    24
    
    
    
    5.8
    %
    
    
    3.1
    %BUENOS AIRES-REST
    
    
    1,250
    
    
    
    31.2
    %
    
    
    52
    
    
    
    12.5
    %
    
    
    4.2
    %CATAMARCA
    
    
    22
    
    
    
    0.5
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    4.5
    %CHACO
    
    
    61
    
    
    
    1.5
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    3.3
    %CHUBUT
    
    
    82
    
    
    
    2.0
    %
    
    
    4
    
    
    
    1.0
    %
    
    
    4.9
    %CORDOBA
    
    
    395
    
    
    
    9.9
    %
    
    
    68
    
    
    
    16.3
    %
    
    
    17.2
    %CORRIENTES
    
    
    60
    
    
    
    1.5
    %
    
    
    3
    
    
    
    0.7
    %
    
    
    5.0
    %ENTRE RIOS
    
    
    119
    
    
    
    3.0
    %
    
    
    6
    
    
    
    1.4
    %
    
    
    5.0
    %FORMOSA
    
    
    18
    
    
    
    0.4
    %
    
    
    
    
    
    
    
    
    
    
    JUJUY
    
    
    30
    
    
    
    0.7
    %
    
    
    15
    
    
    
    3.6
    %
    
    
    50.0
    %LA PAMPA
    
    
    103
    
    
    
    2.6
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    1.9
    %LA RIOJA
    
    
    26
    
    
    
    0.6
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    7.7
    %MENDOZA
    
    
    141
    
    
    
    3.5
    %
    
    
    13
    
    
    
    3.1
    %
    
    
    9.2
    %MISIONES
    
    
    64
    
    
    
    1.6
    %
    
    
    35
    
    
    
    8.4
    %
    
    
    54.7
    %NEUQUÉN
    
    
    70
    
    
    
    1.7
    %
    
    
    4
    
    
    
    1.0
    %
    
    
    5.7
    %RIO NEGRO
    
    
    63
    
    
    
    1.6
    %
    
    
    7
    
    
    
    1.7
    %
    
    
    11.1
    %SALTA
    
    
    52
    
    
    
    1.3
    %
    
    
    24
    
    
    
    5.8
    %
    
    
    46.2
    %SAN JUAN
    
    
    35
    
    
    
    0.9
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    2.9
    %SAN LUIS
    
    
    44
    
    
    
    1.1
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    2.3
    %SANTA CRUZ
    
    
    38
    
    
    
    0.9
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    5.3
    %SANTA FE
    
    
    430
    
    
    
    10.7
    %
    
    
    119
    
    
    
    28.6
    %
    
    
    27.7
    %SANTIAGO DEL ESTERO
    
    
    50
    
    
    
    1.2
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    2.0
    %TIERRA DEL FUEGO
    
    
    17
    
    
    
    0.4
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    11.8
    %TUCUMAN
    
    
    62
    
    
    
    1.5
    %
    
    
    28
    
    
    
    6.7
    %
    
    
    45.2
    %TOTAL
    
    
    4,009
    
    
    
    100.0
    %
    
    
    416
    
    
    
    100.0
    %
    
    
    10.4
    %
  27




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##### Table of Contents



MarketMarket
    
    
    
    
    
    
    Share of
    
    
    
    
    
    
    Market
    
    
    % ofNumber
    
    
    Total
    
    
    Share of
    
    
    Branches
    
    
    Branches
    
    
    Branches
    
    
    Share of
    
    
    Branchesof
    
    
    Number
    
    
    Branches
    
    
    in City of
    
    
    in City of
    
    
    in the
    
    
    Branches
    
    
    in theProvinces
    
    
    of
    
    
    in
    
    
    Buenos
    
    
    Buenos
    
    
    Rest of
    
    
    in Rest of
    
    
    Rest ofServed
    
    
    Branches
    
    
    Argentina
    
    
    Aires
    
    
    Aires
    
    
    Country
    
    
    Country
    
    
    Country1 BANCO MACRO S.A. (2)
    
    
    23
    
    
    
    416
    
    
    
    10
    %
    
    
    24
    
    
    
    3
    %
    
    
    392
    
    
    
    12
    %
    
    
    94
    %2 BANCO DE LA NACION
ARGENTINA (1)
    
    
    24
    
    
    
    623
    
    
    
    16
    %
    
    
    64
    
    
    
    8
    %
    
    
    559
    
    
    
    17
    %
    
    
    90
    %3 COMPAÑIA FINANCIERA
ARGENTINA S.A.
    
    
    18
    
    
    
    59
    
    
    
    1
    %
    
    
    8
    
    
    
    1
    %
    
    
    51
    
    
    
    2
    %
    
    
    86
    %4 BANCO CREDICOOP
COOPERATIVO
LIMITADO
    
    
    19
    
    
    
    243
    
    
    
    6
    %
    
    
    36
    
    
    
    5
    %
    
    
    207
    
    
    
    6
    %
    
    
    85
    %5 BANCO PATAGONIA S.A.
    
    
    24
    
    
    
    135
    
    
    
    3
    %
    
    
    37
    
    
    
    5
    %
    
    
    98
    
    
    
    3
    %
    
    
    73
    %6 BANCO
SANTANDER RIO S.A.
    
    
    21
    
    
    
    258
    
    
    
    6
    %
    
    
    80
    
    
    
    10
    %
    
    
    178
    
    
    
    6
    %
    
    
    69
    %7 BANCO DE
GALICIA Y BUENOS AIRES S.A.
    
    
    24
    
    
    
    238
    
    
    
    6
    %
    
    
    76
    
    
    
    10
    %
    
    
    162
    
    
    
    5
    %
    
    
    68
    %8 BBVA BANCO
FRANCES S.A.
    
    
    24
    
    
    
    240
    
    
    
    6
    %
    
    
    83
    
    
    
    11
    %
    
    
    157
    
    
    
    5
    %
    
    
    65
    %9 STANDARD
BANK ARGENTINA S.A.
    
    
    17
    
    
    
    95
    
    
    
    2
    %
    
    
    33
    
    
    
    4
    %
    
    
    62
    
    
    
    2
    %
    
    
    65
    %10 HSBC BANK
ARGENTINA S.A.
    
    
    19
    
    
    
    122
    
    
    
    3
    %
    
    
    44
    
    
    
    6
    %
    
    
    78
    
    
    
    2
    %
    
    
    64
    %OTHER
    
    
    24
    
    
    
    1,580
    
    
    
    39
    %
    
    
    292
    
    
    
    38
    %
    
    
    1,288
    
    
    
    40
    %
    
    
    82
    %TOTAL
    
    
    24
    
    
    
    4,009
    
    
    
    100.0
    %
    
    
    777
    
    
    
    100.0
    %
    
    
    3,232
    
    
    
    100.0
    %
    
    
    81
    %
 Source: Central Bank and our consolidated financial statements.(1)
    
    Public sector banks.(2)
    
    Includes the branches of Banco Macro, Banco del Tucumán and Nuevo Banco Bisel. Argentine Banking Regulation
 Overview
    28




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##### Table of Contents



Banking regulations
  Permitted activities and investments
  Responsabilidad Patrimonial Computable
 Operations and activities that banks are not permitted to perform
   29




---



##### Table of Contents



LIQUIDITY AND SOLVENCY REQUIREMENTS
 Minimum capital requirements
   Description of Argentine Tier 1 and Tier 2 Capital Regulations
 Responsabilidad Patrimonial Computable
    Requirements for subordinated debt to be computed as Tier 1 Capital
       30




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##### Table of Contents



pari passu
    Counterpart risk
     Type of Asset
    
    WeightingCash and cash equivalents
    
    
    0-20
    %Government BondsWith market risk capital requirements and BCRA monetary control instruments including
those registered as available of sale and investment accounts
    
    
    0
    %Other domestic bonds (without Central Government collateral)
    
    
    100
    %OECD Central Government bondsrated AA or higher
    
    
    20
    %LoansTo the non-financial private sectorWith preferred collateral under the form of:Cash, time deposit certificates issued by the creditor institution and given as security
    
    
    0
    %A guarantee by Reciprocal Guarantee Companies authorized by the BCRA, export credit
insurance, documentary credits
    
    
    50
    %Mortgages
    
    
    50%-100
    %Pledges
    
    
    50%-100
    %To the non-financial public sector
    
    
    100
    %To the financial sectorPublic financial entities with the collection of federal taxes as collateral
    
    
    50
    %To foreign financial institutions or to financial institutions backed by them (rated AA
or higher or investment grade)
    
    
    0%-20
    %Other credits from financial intermediation
    
    
    0%-100
    %Assets subject to financial leasing
    
    
    50%-100
    %Other assets
    
    
    0%-100
    %Guarantees and contingent liabilities
    
    
    0%-100
    %
  31




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##### Table of Contents



CAMEL Rating
    
    K Factor1
    
    
    0.972
    
    
    1.003
    
    
    1.054
    
    
    1.105
    
    
    1.15
 Interest rate risk
     Market risk
     Temporary regulations
  Alpha1 (applied
    
    
    Alpha2 (appliedto public sector
    
    
    to interestPeriod
    
    financing)
    
    
    rate risk)January/December 2004
    
    
    0.05
    
    
    
    0.20January/December 2005
    
    
    0.15
    
    
    
    0.40January/December 2006
    
    
    0.30
    
    
    
    0.70January/December 2007
    
    
    0.50
    
    
    
    1.00January/December 2008
    
    
    0.75
    
    
    
    1.00As from January 2009
    
    
    1.00
    
    
    
    1.00
  32




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##### Table of Contents



Consequences of a failure to meet minimum capital requirements
     Minimum cash requirements
       Rate (%)Rate (%)
    
    
    (ForeignItem
    
    (Pesos)
    
    
    Currency)Checking account deposits
    
    
    19
    
    
    
    Savings account deposits
    
    
    19
    
    
    
    20Legal custody accounts, special accounts for savings clubs, Unemployment Fund for
construction industry workers and Salary payment, special checking accounts for legal
entities and social security savings accounts
    
    
    19
    
    
    
    20Other demand deposits and liabilities, including with foreign banks and correspondents,
pension and social security benefits credited by ANSES (Government Social Security
Agency) pending collection and immobilized reserve funds for liabilities covered by these
regulations
    
    
    19
    
    
    
    20Unused balances of advances in checking accounts under formal agreements
    
    
    19
    
    
    
    Deposits in checking accounts of non-bank financial institutions, computed for purposes
of meeting their required minimum cash reserve
    
    
    100
    
    
    
    100
  33




---



##### Table of Contents



Rate (%)Rate (%)
    
    
    (ForeignItem
    
    (Pesos)
    
    
    Currency)Time deposits, liabilities under acceptances, repurchase agreements (Included
responsibilities for sale or transfer of credits to agents different from financial
institutions) , stock-exchange repos (cautions and stock exchange passive repos),
constantterm investments, with an option for early termination or for renewal for a
specified term and variable income, and other fixed-term liabilities, except rescheduled
deposits included in the following items 11 and 12 and 13 and 15 of this table:(i) Up to 29 days
    
    
    14
    
    
    
    20(ii) From 30 days to 59 days
    
    
    11
    
    
    
    15(iii) From 60 days to 89 days
    
    
    7
    
    
    
    10(iv) From 90 days to 179 days
    
    
    2
    
    
    
    5(v) From 180 days to 365 days
    
    
    
    
    
    
    2(vi) More than 365 days
    
    
    
    
    
    
    Liabilities owed due to foreign finances
    
    
    
    
    
    
    Securities (including Negotiable Obligations)
    
    
    
    
    
    
    a- Debt issued from 01/01/02, including restructured liabilities
    
    
    
    
    
    
    (i) Up to 29 days
    
    
    14
    
    
    
    20(ii) From 30 days to 59 days
    
    
    11
    
    
    
    15(iii) From 60 days to 89 days
    
    
    7
    
    
    
    10(iv) From 90 days to 179 days
    
    
    2
    
    
    
    5(v) From 180 days to 365 days
    
    
    
    
    
    
    2(vi) More than 365 days
    
    
    
    
    
    
    b- Others
    
    
    
    
    
    
    Liabilities owing to the Trust Fund for Assistance to Financial and Insurance Institutions
    
    
    
    
    
    
    Demand and time deposits made upon a court order with funds arising from cases pending
before the court, and the related immobilized balances
    
    
    10
    
    
    
    10Deposits as assets of a mutual fund
    
    
    19
    
    
    
    20Special deposits related to inflows of funds. Decree 616/2005
    
    
    
    
    
    
    100Deposits and other liabilities (excluding Fondo de Desempleo para los trabajadores de la
Industria de la Construcción) which return is higher than the 15% of BADLAR rates
average, corresponding to the preceding month
    
    
    100
    
    
    
    Time deposits in pesos, belonging to public sector holders, with the right to opt for
early withdrawal in less than 30 days from its setting up
    
    
    16
    
    
    
    
                34




---



##### Table of Contents



Internal liquidity policies of financial institutions
  Credit risk
        Foreign exchange system
     Foreign currency lending capacity
   35




---



##### Table of Contents



General Exchange Position
     Foreign Currency Net Global Position
    
    
    Negative foreign currency net global position (liabilities exceeding assets): the limit is 30%
of the Computable Net Worth until December 31, 2006. As from January 1, 2007 (Communications A
4577 and 4598) the limit is 15%, but it can be extended up to 15 p.p. under certain
circumstances: at the same time has recorded a) medium and long term financings in pesos to
non-financial private sector under certain conditions for an amount equivalent to the increase
of said limit; and b) an increase in the minimum capital requirement equivalent to the increase
of the general limit of the negative foreign currency net global position.
 
    
    Positive net global position (assets exceeding liabilities): this limit cannot exceed the
lesser of:
 1.
    
    30% of the Computable Net Worth.2.
    
    Own liquid resources (refer to RPC minus fixed assets and loans to
related clients).
   Fixed assets and other items
   
    
    Shares of local companies
    
    Miscellaneous receivables
    
    Property and equipment
  36




---



##### Table of Contents




    
    Other assets
    
    Organization and development expenses
    
    Goodwill
    
    Financing transactions to related clients.
   st
 Debt classification and loan loss provisions
 Credit portfolio
   Commercial loans classification
  Classification
    
    CriteriaIn normal situation
    
    Borrowers for whom there is no doubt as to their ability to comply with their payment
obligations.Subject to special monitoring
In observation
    
    Borrowers that among other criteria are up to 90 days past due and, although
considered to be able to meet all their financial obligations, are sensitive to
changes that could compromise their ability to honor debts absent timely corrective
measures.Subject to special monitoring
Tracking under negotiation or with
refinancing agreement
    
    Borrowers who are unable to comply with their obligations as agreed with the bank and
therefore, formally state, at least 60 days before the date on which the payment of
their obligations is due, their intention to refinance such debts. The borrower must
enter into an agreement with the lender within 90 days (if up to two lenders are
involved) or 180 days (if more than two lenders are involved) after the date on which
the obligations became overdue. If no agreement has been reached within the
established deadline, the borrower must be reclassified to the next category below
according to the indicators established for each level.Troubled
    
    Borrowers with difficulties honoring their financial obligations under the loan on a
regular basis, which, if uncorrected, may result in losses to the bank.With high risk of insolvency
    
    Borrowers who are highly unlikely to honor their financial obligations under the loan.Irrecoverable
    
    Loans classified as unrecoverable at the time they are reviewed (although the
possibility might exist that such loans might be collected in the future). The
borrower will not meet its financial obligations to the classifying bank.
  37




---



##### Table of Contents



Classification
    
    CriteriaIrrecoverable according to Central
Banks rules
    
    (a) Borrower has defaulted on its payment obligations under a loan for more than 180
calendar days according to the corresponding report provided by the Central Bank,
which report includes (1) financial institutions liquidated by the Central Bank, (2)
residual entities created as a result of the privatization of public financial
institutions, or in the privatization or dissolution process, (3) financial
institutions whose licenses have been revoked by the Central Bank and find themselves
subject to judicial liquidation or bankruptcy proceedings and (4) trusts in which
SEDESA is a beneficiary, and/or (b) certain kinds of foreign borrowers (including
banks or other financial institutions that are not subject to the supervision of the
Central Bank or similar authority of the country in which they are incorporated) that
are not classified as investment grade by any of the rating agencies approved by
the Central Bank.
 Consumer and housing loans classification
  Classification
    
    CriteriaPerforming
    
    If all payments on loans are current or less than 31 calendar days overdue and, in the case
of checking account overdrafts, less than 61 calendar days overdue.Low Risk
    
    Loans upon which payment obligations are overdue for a period of more than 31 and up to 90,
calendar days.Medium Risk
    
    Loans upon which payment obligations are overdue for a period of more than 90 and up to 180
calendar days.High Risk
    
    Loans having payment obligations overdue for more than 180 calendar days and up to one year
or if it is subject to judicial proceedings for default on any of those loans.Irrecoverable
    
    Loans in which payment obligations are more than one year overdue or the debtor is
insolvent or in bankruptcy or liquidation.Irrecoverable according to Central
Banks rules
    
    Same criteria as for commercial loans in the Irrecoverable by technical decision category.
 Minimum credit provisions
  With Preferred
    
    
    Without PreferredCategory
    
    Guarantees
    
    
    GuaranteesNormal
    
    
    1
    %
    
    
    1
    %Under observation and Low risk
    
    
    3
    %
    
    
    5
    %Under negotiation or refinancing agreement
    
    
    6
    %
    
    
    12
    %With Problems and Medium Risk
    
    
    12
    %
    
    
    25
    %With high risk of insolvency and High Risk
    
    
    25
    %
    
    
    50
    %Irrecoverable
    
    
    50
    %
    
    
    100
    %Irrecoverable by technical decision
    
    
    100
    %
    
    
    100
    %
  Minimum frequency for classification review
  Allowances for loan losses
   38




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##### Table of Contents



Priority rights of depositors
  Mandatory deposit insurance system
  Seguro de Depósitos Sociedad Anónima,
     Capital markets
  sociedades de bolsa, sociedad de bolsa sociedad de bolsa.
  fondos comunes de
inversión
  39




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##### Table of Contents



Financial institutions in economic difficulties
 plan de regularización y saneamiento, interventor,
 Dissolution and liquidation of financial institutions
   Money laundering
         Merger, consolidation and transfer of goodwill
   40




---



##### Table of Contents



Financial System Restructuring Unit
  C. Organizational Structure
 Subsidiaries
   Banco Macro S.A.sdirect and indirect equity interestPercentage ofSubsidiary
    
    Capital Stock and possible votesNuevo Banco Bisel S.A. (1)
    
    
    99.997
    %Banco del Tucumán S.A. (1)
    
    
    89.932
    %Macro Bank Limited (former Sud Bank & Trust Company Limited) (2)
    
    
    99.999
    %Macro Securities S.A. Sociedad de Bolsa (1)
    
    
    99.921
    %Sud Inversiones & Análisis S.A. (1)
    
    
    98.605
    %Macro Fondos S.G.F.C.I. S.A. (1)
    
    
    99.936
    %
 (1)
    
    Country of residence: Argentina(2)
    
    Country of residence: Bahamas D. Property, plants and equipment
 Property
  Selected Statistical Information
 Operating and Financial Review and
Prospects"
  41




---



##### Table of Contents



Average balance sheets, interest earned on interest-earning assets and interest paid on
interest-bearing liabilities
  Years Ended December 31,2006 (1)
    
    
    2007 (1)
    
    
    2008Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    AverageAverage
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    NominalBalance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate(in thousands of pesos, except percentages)ASSETSInterest-earning assetsGovernment securities (2)Pesos
    
    
    2,428,667
    
    
    
    284,121
    
    
    
    11.70
    %
    
    
    3,923,881
    
    
    
    421,477
    
    
    
    10.74
    %
    
    
    4,346,565
    
    
    
    540,302
    
    
    
    12.43
    %Dollars
    
    
    230,924
    
    
    
    (9,971
    )
    
    
    (4.32
    %)
    
    
    181,080
    
    
    
    15,598
    
    
    
    8.61
    %
    
    
    215,732
    
    
    
    (5,785
    )
    
    
    (2.68
    %)Total
    
    
    2,659,591
    
    
    
    274,150
    
    
    
    10.31
    %
    
    
    4,104,961
    
    
    
    437,075
    
    
    
    10.65
    %
    
    
    4,562,297
    
    
    
    534,517
    
    
    
    11.72
    %LoansPrivate and financial SectorPesos
    
    
    3,798,073
    
    
    
    576,243
    
    
    
    15.17
    %
    
    
    6,162,786
    
    
    
    1,041,645
    
    
    
    16.90
    %
    
    
    8,552,950
    
    
    
    1,786,608
    
    
    
    20.89
    %Dollars
    
    
    715,551
    
    
    
    39,204
    
    
    
    5.48
    %
    
    
    1,228,829
    
    
    
    78,815
    
    
    
    6.41
    %
    
    
    1,821,403
    
    
    
    143,916
    
    
    
    7.90
    %Total
    
    
    4,513,624
    
    
    
    615,447
    
    
    
    13.64
    %
    
    
    7,391,615
    
    
    
    1,120,460
    
    
    
    15.16
    %
    
    
    10,374,353
    
    
    
    1,930,524
    
    
    
    18.61
    %Public SectorPesos
    
    
    694,938
    
    
    
    93,427
    
    
    
    13.44
    %
    
    
    767,970
    
    
    
    51,575
    
    
    
    6.72
    %
    
    
    755,364
    
    
    
    38,058
    
    
    
    5.04
    %Total
    
    
    694,938
    
    
    
    93,427
    
    
    
    13.44
    %
    
    
    767,970
    
    
    
    51,575
    
    
    
    6.72
    %
    
    
    755,364
    
    
    
    38,058
    
    
    
    5.04
    %Deposits with the Central
BankPesos
    
    
    733,687
    
    
    
    2,825
    
    
    
    0.39
    %
    
    
    1,377,853
    
    
    
    10,908
    
    
    
    0.79
    %
    
    
    1,677,710
    
    
    
    9,386
    
    
    
    0.56
    %Dollars
    
    
    441,288
    
    
    
    7,561
    
    
    
    1.71
    %
    
    
    568,821
    
    
    
    7,474
    
    
    
    1.31
    %
    
    
    598,344
    
    
    
    4,998
    
    
    
    0.84
    %Total
    
    
    1,174,975
    
    
    
    10,386
    
    
    
    0.88
    %
    
    
    1,946,674
    
    
    
    18,382
    
    
    
    0.94
    %
    
    
    2,276,054
    
    
    
    14,384
    
    
    
    0.63
    %Other assetsPesos
    
    
    1,055,424
    
    
    
    95,937
    
    
    
    9.09
    %
    
    
    1,289,250
    
    
    
    138,041
    
    
    
    10.71
    %
    
    
    1,078,256
    
    
    
    174,081
    
    
    
    16.14
    %Dollars
    
    
    478,870
    
    
    
    20,592
    
    
    
    4.30
    %
    
    
    417,109
    
    
    
    23,663
    
    
    
    5.67
    %
    
    
    539,237
    
    
    
    46,871
    
    
    
    8.69
    %Total
    
    
    1,534,294
    
    
    
    116,529
    
    
    
    7.59
    %
    
    
    1,706,359
    
    
    
    161,704
    
    
    
    9.48
    %
    
    
    1,617,493
    
    
    
    220,952
    
    
    
    13.66
    %Total interest-earning assetsPesos
    
    
    8,710,789
    
    
    
    1,052,553
    
    
    
    12.08
    %
    
    
    13,521,740
    
    
    
    1,663,646
    
    
    
    12.30
    %
    
    
    16,410,845
    
    
    
    2,548,435
    
    
    
    15.53
    %Dollars
    
    
    1,866,633
    
    
    
    57,386
    
    
    
    3.07
    %
    
    
    2,395,839
    
    
    
    125,550
    
    
    
    5.24
    %
    
    
    3,174,716
    
    
    
    190,000
    
    
    
    5.98
    %Total
    
    
    10,577,422
    
    
    
    1,109,939
    
    
    
    10.49
    %
    
    
    15,917,579
    
    
    
    1,789,196
    
    
    
    11.24
    %
    
    
    19,585,561
    
    
    
    2,738,435
    
    
    
    13.98
    %Non interest-earning assetsCash and due from banksPesos
    
    
    325,154
    
    
    
    
    
    
    
    
    
    
    
    404,796
    
    
    
    
    
    
    
    
    
    
    
    539,344
    
    
    
    Dollars
    
    
    353,051
    
    
    
    
    
    
    
    
    
    
    
    455,163
    
    
    
    
    
    
    
    
    
    
    
    286,879
    
    
    
    Euros
    
    
    8,955
    
    
    
    
    
    
    
    
    
    
    
    14,590
    
    
    
    
    
    
    
    
    
    
    
    8,589
    
    
    
    Other
    
    
    1,481
    
    
    
    
    
    
    
    
    
    
    
    2,002
    
    
    
    
    
    
    
    
    
    
    
    1,405
    
    
    
    Total
    
    
    688,641
    
    
    
    
    
    
    
    
    
    
    
    876,551
    
    
    
    
    
    
    
    
    
    
    
    836,217Investments in other
companiesPesos
    
    
    9,176
    
    
    
    
    
    
    
    
    
    
    
    9,215
    
    
    
    
    
    
    
    
    
    
    
    11,636
    
    
    
    Dollars
    
    
    1,025
    
    
    
    
    
    
    
    
    
    
    
    1,552
    
    
    
    
    
    
    
    
    
    
    
    1,275
    
    
    
    Total
    
    
    10,201
    
    
    
    
    
    
    
    
    
    
    
    10,767
    
    
    
    
    
    
    
    
    
    
    
    12,911
    
    
    
    Property and equipment and
miscellaneous and
intangible assets and
items pending of allocationPesos
    
    
    578,243
    
    
    
    
    
    
    
    
    
    
    
    771,073
    
    
    
    
    
    
    
    
    
    
    
    801,674
    
    
    
    Total
    
    
    578,243
    
    
    
    
    
    
    
    
    
    
    
    771,073
    
    
    
    
    
    
    
    
    
    
    
    801,674
    
    
    
    
  42




---



##### Table of Contents



Years Ended December 31,2006 (1)
    
    
    2007 (1)
    
    
    2008Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    AverageAverage
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    NominalBalance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate(in thousands of pesos, except percentages)Allowance for loan lossesPesos
    
    
    (287,893
    )
    
    
    
    
    
    
    
    
    
    
    (174,992
    )
    
    
    
    
    
    
    
    
    
    
    (203,344
    )
    
    
    Dollars
    
    
    (44,945
    )
    
    
    
    
    
    
    
    
    
    
    (27,271
    )
    
    
    
    
    
    
    
    
    
    
    (39,776
    )
    
    
    Total
    
    
    (332,838
    )
    
    
    
    
    
    
    
    
    
    
    (202,263
    )
    
    
    
    
    
    
    
    
    
    
    (243,120
    )
    
    
    Other assetsPesos
    
    
    166,439
    
    
    
    
    
    
    
    
    
    
    
    271,428
    
    
    
    
    
    
    
    
    
    
    
    578,682
    
    
    
    Dollars
    
    
    103,471
    
    
    
    
    
    
    
    
    
    
    
    41,280
    
    
    
    
    
    
    
    
    
    
    
    288,686
    
    
    
    Euros
    
    
    43
    
    
    
    
    
    
    
    
    
    
    
    40
    
    
    
    
    
    
    
    
    
    
    
    66
    
    
    
    Total
    
    
    269,953
    
    
    
    
    
    
    
    
    
    
    
    312,748
    
    
    
    
    
    
    
    
    
    
    
    867,434
    
    
    
    Total non interest-earning
assetsPesos
    
    
    791,119
    
    
    
    
    
    
    
    
    
    
    
    1,281,520
    
    
    
    
    
    
    
    
    
    
    
    1,727,992
    
    
    
    Dollars
    
    
    412,602
    
    
    
    
    
    
    
    
    
    
    
    470,724
    
    
    
    
    
    
    
    
    
    
    
    537,064
    
    
    
    Euros
    
    
    8,998
    
    
    
    
    
    
    
    
    
    
    
    14,630
    
    
    
    
    
    
    
    
    
    
    
    8,655
    
    
    
    Other
    
    
    1,481
    
    
    
    
    
    
    
    
    
    
    
    2,002
    
    
    
    
    
    
    
    
    
    
    
    1,405
    
    
    
    Total
    
    
    1,214,200
    
    
    
    
    
    
    
    
    
    
    
    1,768,876
    
    
    
    
    
    
    
    
    
    
    
    2,275,116
    
    
    
    TOTAL ASSETSPesos
    
    
    9,501,908
    
    
    
    
    
    
    
    
    
    
    
    14,803,260
    
    
    
    
    
    
    
    
    
    
    
    18,138,837
    
    
    
    Dollars
    
    
    2,279,235
    
    
    
    
    
    
    
    
    
    
    
    2,866,563
    
    
    
    
    
    
    
    
    
    
    
    3,711,780
    
    
    
    Euros
    
    
    8,998
    
    
    
    
    
    
    
    
    
    
    
    14,630
    
    
    
    
    
    
    
    
    
    
    
    8,655
    
    
    
    Other
    
    
    1,481
    
    
    
    
    
    
    
    
    
    
    
    2,002
    
    
    
    
    
    
    
    
    
    
    
    1,405
    
    
    
    Total
    
    
    11,791,622
    
    
    
    
    
    
    
    
    
    
    
    17,686,455
    
    
    
    
    
    
    
    
    
    
    
    21,860,677
    
    
    
    LIABILITIESInterest-bearing liabilitiesSavings accountsPesos
    
    
    1,474,473
    
    
    
    15,410
    
    
    
    1.05
    %
    
    
    2,486,927
    
    
    
    27,313
    
    
    
    1.10
    %
    
    
    2,822,961
    
    
    
    29,508
    
    
    
    1.05
    %Dollars
    
    
    216,176
    
    
    
    1,013
    
    
    
    0.47
    %
    
    
    378,907
    
    
    
    3,070
    
    
    
    0.81
    %
    
    
    451,892
    
    
    
    2,734
    
    
    
    0.61
    %Total
    
    
    1,690,649
    
    
    
    16,423
    
    
    
    0.97
    %
    
    
    2,865,834
    
    
    
    30,383
    
    
    
    1.06
    %
    
    
    3,274,853
    
    
    
    32,242
    
    
    
    0.98
    %Certificates of depositsPesos
    
    
    3,056,186
    
    
    
    252,927
    
    
    
    8.28
    %
    
    
    4,589,993
    
    
    
    421,823
    
    
    
    9.19
    %
    
    
    6,556,086
    
    
    
    873,787
    
    
    
    13.33
    %Dollars
    
    
    1,190,185
    
    
    
    31,167
    
    
    
    2.62
    %
    
    
    1,437,841
    
    
    
    47,923
    
    
    
    3.33
    %
    
    
    1,717,511
    
    
    
    63,970
    
    
    
    3.72
    %Total
    
    
    4,246,371
    
    
    
    284,094
    
    
    
    6.69
    %
    
    
    6,027,834
    
    
    
    469,746
    
    
    
    7.79
    %
    
    
    8,273,597
    
    
    
    937,757
    
    
    
    11.33
    %Borrowing from the Central
BankPesos
    
    
    305,108
    
    
    
    12,423
    
    
    
    4.07
    %
    
    
    370,182
    
    
    
    37,344
    
    
    
    10.09
    %
    
    
    330,532
    
    
    
    33,713
    
    
    
    10.20
    %Total
    
    
    305,108
    
    
    
    12,423
    
    
    
    4.07
    %
    
    
    370,182
    
    
    
    37,344
    
    
    
    10.09
    %
    
    
    330,532
    
    
    
    33,713
    
    
    
    10.20
    %Borrowings from other
financial institutionsPesos
    
    
    99,907
    
    
    
    8,310
    
    
    
    8.32
    %
    
    
    223,845
    
    
    
    20,394
    
    
    
    9.11
    %
    
    
    121,897
    
    
    
    11,847
    
    
    
    9.72
    %Dollars
    
    
    148,962
    
    
    
    19,963
    
    
    
    13.40
    %
    
    
    202,259
    
    
    
    13,967
    
    
    
    6.91
    %
    
    
    287,667
    
    
    
    19,539
    
    
    
    6.79
    %Total
    
    
    248,869
    
    
    
    28,273
    
    
    
    11.36
    %
    
    
    426,104
    
    
    
    34,361
    
    
    
    8.06
    %
    
    
    409,564
    
    
    
    31,386
    
    
    
    7.66
    %Corporate BondsPesos
    
    
    6,338
    
    
    
    1,015
    
    
    
    16.01
    %
    
    
    178,101
    
    
    
    19,082
    
    
    
    10.71
    %
    
    
    309,263
    
    
    
    34,055
    
    
    
    11.01
    %Dollars
    
    
    38,863
    
    
    
    1,612
    
    
    
    4.15
    %
    
    
    918,054
    
    
    
    86,444
    
    
    
    9.42
    %
    
    
    915,000
    
    
    
    83,911
    
    
    
    9.17
    %Total
    
    
    45,201
    
    
    
    2,627
    
    
    
    5.81
    %
    
    
    1,096,155
    
    
    
    105,526
    
    
    
    9.63
    %
    
    
    1,224,263
    
    
    
    117,966
    
    
    
    9.64
    %Other liabilitiesPesos
    
    
    338,408
    
    
    
    13,769
    
    
    
    4.07
    %
    
    
    412,865
    
    
    
    21,096
    
    
    
    5.11
    %
    
    
    450,926
    
    
    
    29,528
    
    
    
    6.55
    %Dollars
    
    
    312,636
    
    
    
    648
    
    
    
    0.21
    %
    
    
    217,335
    
    
    
    2,470
    
    
    
    1.14
    %
    
    
    31,530
    
    
    
    3,183
    
    
    
    10.10
    %Total
    
    
    651,044
    
    
    
    14,417
    
    
    
    2.21
    %
    
    
    630,200
    
    
    
    23,566
    
    
    
    3.74
    %
    
    
    482,456
    
    
    
    32,711
    
    
    
    6.78
    %Total Interest-bearing
liabilitiesPesos
    
    
    5,280,420
    
    
    
    303,854
    
    
    
    5.75
    %
    
    
    8,261,913
    
    
    
    547,052
    
    
    
    6.62
    %
    
    
    10,591,665
    
    
    
    1,012,438
    
    
    
    9.56
    %Dollars
    
    
    1,906,822
    
    
    
    54,403
    
    
    
    2.85
    %
    
    
    3,154,396
    
    
    
    153,874
    
    
    
    4.88
    %
    
    
    3,403,600
    
    
    
    173,337
    
    
    
    5.09
    %Total
    
    
    7,187,242
    
    
    
    358,257
    
    
    
    4.98
    %
    
    
    11,416,309
    
    
    
    700,926
    
    
    
    6.14
    %
    
    
    13,995,265
    
    
    
    1,185,775
    
    
    
    8.47
    %
  43




---



##### Table of Contents



Years Ended December 31,2006 (1)
    
    
    2007 (1)
    
    
    2008Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    AverageAverage
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    NominalBalance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate(in thousands of pesos, except percentages)Non-interest bearing
liabilities and
Stockholders equity
Demand depositsPesos
    
    
    2,014,468
    
    
    
    
    
    
    
    
    
    
    
    3,069,049
    
    
    
    
    
    
    
    
    
    
    
    3,665,895
    
    
    
    Dollars
    
    
    3,502
    
    
    
    
    
    
    
    
    
    
    
    6,680
    
    
    
    
    
    
    
    
    
    
    
    8,059
    
    
    
    Total
    
    
    2,017,970
    
    
    
    
    
    
    
    
    
    
    
    3,075,729
    
    
    
    
    
    
    
    
    
    
    
    3,673,954
    
    
    
    Other liabilitiesPesos
    
    
    493,194
    
    
    
    
    
    
    
    
    
    
    
    511,872
    
    
    
    
    
    
    
    
    
    
    
    906,423
    
    
    
    Dollars
    
    
    140,127
    
    
    
    
    
    
    
    
    
    
    
    185,904
    
    
    
    
    
    
    
    
    
    
    
    490,452
    
    
    
    Euros
    
    
    2,623
    
    
    
    
    
    
    
    
    
    
    
    6,045
    
    
    
    
    
    
    
    
    
    
    
    6,916
    
    
    
    Other
    
    
    124
    
    
    
    
    
    
    
    
    
    
    
    130
    
    
    
    
    
    
    
    
    
    
    
    75
    
    
    
    Total
    
    
    636,068
    
    
    
    
    
    
    
    
    
    
    
    703,951
    
    
    
    
    
    
    
    
    
    
    
    1,403,866
    
    
    
    Minority InterestPesos
    
    
    35,097
    
    
    
    
    
    
    
    
    
    
    
    34,112
    
    
    
    
    
    
    
    
    
    
    
    14,333
    
    
    
    Total
    
    
    35,097
    
    
    
    
    
    
    
    
    
    
    
    34,112
    
    
    
    
    
    
    
    
    
    
    
    14,333
    
    
    
    Stockholders equityPesos
    
    
    1,915,245
    
    
    
    
    
    
    
    
    
    
    
    2,456,353
    
    
    
    
    
    
    
    
    
    
    
    2,773,259
    
    
    
    Total
    
    
    1,915,245
    
    
    
    
    
    
    
    
    
    
    
    2,456,353
    
    
    
    
    
    
    
    
    
    
    
    2,773,259
    
    
    
    Total non-interest bearing
liabilities and
stockholders equityPesos
    
    
    4,458,004
    
    
    
    
    
    
    
    
    
    
    
    6,071,386
    
    
    
    
    
    
    
    
    
    
    
    7,359,910Dollars
    
    
    143,629
    
    
    
    
    
    
    
    
    
    
    
    192,584
    
    
    
    
    
    
    
    
    
    
    
    498,511Euros
    
    
    2,623
    
    
    
    
    
    
    
    
    
    
    
    6,045
    
    
    
    
    
    
    
    
    
    
    
    6,916Other
    
    
    124
    
    
    
    
    
    
    
    
    
    
    
    130
    
    
    
    
    
    
    
    
    
    
    
    75Total
    
    
    4,604,380
    
    
    
    
    
    
    
    
    
    
    
    6,270,145
    
    
    
    
    
    
    
    
    
    
    
    7,865,412TOTAL LIABILITIES AND
STOCKHOLDERS EQUITYPesos
    
    
    9,738,424
    
    
    
    
    
    
    
    
    
    
    
    14,333,299
    
    
    
    
    
    
    
    
    
    
    
    17,951,575
    
    
    
    Dollars
    
    
    2,050,451
    
    
    
    
    
    
    
    
    
    
    
    3,346,980
    
    
    
    
    
    
    
    
    
    
    
    3,902,111
    
    
    
    Euros
    
    
    2,623
    
    
    
    
    
    
    
    
    
    
    
    6,045
    
    
    
    
    
    
    
    
    
    
    
    6,916
    
    
    
    Other
    
    
    124
    
    
    
    
    
    
    
    
    
    
    
    131
    
    
    
    
    
    
    
    
    
    
    
    74
    
    
    
    Total
    
    
    11,791,622
    
    
    
    
    
    
    
    
    
    
    
    17,686,455
    
    
    
    
    
    
    
    
    
    
    
    21,860,677
    
    
    
    
 (1)
    
    See note 4.2 to our audited consolidated financial statements for the year ended
December 31, 2008.(2)
    
    Includes instruments issued by the Central Bank. Changes in interest income and interest expense; volume and rate analysis
  December 2006/December 2005
    
    
    December 2007/December 2006
    
    
    December 2008/December 2007Increase (Decrease) Due to
    
    
    Increase (Decrease) Due to
    
    
    Increase (Decrease) Due toChanges in
    
    
    Changes in
    
    
    Changes inNet
    
    
    
    
    
    
    
    
    
    
    Net
    
    
    
    
    
    
    
    
    
    
    NetVolume
    
    
    Rate
    
    
    Change
    
    
    Volume
    
    
    Rate
    
    
    Change
    
    
    Volume
    
    
    Rate
    
    
    Change(in thousand of pesos)ASSETSInterest-earning assetsGovernment securitiesPesos
    
    
    (14,677
    )
    
    
    94,260
    
    
    
    79,583
    
    
    
    160,606
    
    
    
    (23,250
    )
    
    
    137,356
    
    
    
    52,542
    
    
    
    66,283
    
    
    
    118,825Dollars
    
    
    (3,784
    )
    
    
    5,016
    
    
    
    1,232
    
    
    
    (4,293
    )
    
    
    29,862
    
    
    
    25,569
    
    
    
    (929
    )
    
    
    (20,454
    )
    
    
    (21,383
    )Total
    
    
    (18,461
    )
    
    
    99,276
    
    
    
    80,815
    
    
    
    156,313
    
    
    
    6,612
    
    
    
    162,925
    
    
    
    51,613
    
    
    
    45,829
    
    
    
    97,442
  44




---



##### Table of Contents



December 2006/December 2005
    
    
    December 2007/December 2006
    
    
    December 2008/December 2007Increase (Decrease) Due to
    
    
    Increase (Decrease) Due to
    
    
    Increase (Decrease) Due toChanges in
    
    
    Changes in
    
    
    Changes inNet
    
    
    
    
    
    
    
    
    
    
    Net
    
    
    
    
    
    
    
    
    
    
    NetVolume
    
    
    Rate
    
    
    Change
    
    
    Volume
    
    
    Rate
    
    
    Change
    
    
    Volume
    
    
    Rate
    
    
    Change(in thousand of pesos)Loans
Private and financial
sectorPesos
    
    
    274,311
    
    
    
    16,493
    
    
    
    290,804
    
    
    
    399,688
    
    
    
    65,714
    
    
    
    465,402
    
    
    
    499,276
    
    
    
    245,687
    
    
    
    744,963Dollars
    
    
    13,560
    
    
    
    3,755
    
    
    
    17,315
    
    
    
    32,921
    
    
    
    6,690
    
    
    
    39,611
    
    
    
    46,822
    
    
    
    18,279
    
    
    
    65,101Total
    
    
    287,871
    
    
    
    20,248
    
    
    
    308,119
    
    
    
    432,609
    
    
    
    72,404
    
    
    
    505,013
    
    
    
    546,098
    
    
    
    263,966
    
    
    
    810,064Public sectorPesos
    
    
    (2,591
    )
    
    
    (6,199
    )
    
    
    (8,790
    )
    
    
    4,905
    
    
    
    (46,757
    )
    
    
    (41,852
    )
    
    
    (635
    )
    
    
    (12,882
    )
    
    
    (13,517
    )Dollars
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    (2,591
    )
    
    
    (6,199
    )
    
    
    (8,790
    )
    
    
    4,905
    
    
    
    (46,757
    )
    
    
    (41,852
    )
    
    
    (635
    )
    
    
    (12,882
    )
    
    
    (13,517
    )Deposits with the
Central BankPesos
    
    
    847
    
    
    
    (1,340
    )
    
    
    (493
    )
    
    
    5,100
    
    
    
    2,983
    
    
    
    8,083
    
    
    
    1,678
    
    
    
    (3,200
    )
    
    
    (1,522
    )Dollars
    
    
    2,412
    
    
    
    626
    
    
    
    3,038
    
    
    
    1,676
    
    
    
    (1,763
    )
    
    
    (87
    )
    
    
    247
    
    
    
    (2,723
    )
    
    
    (2,476
    )Total
    
    
    3,259
    
    
    
    (714
    )
    
    
    2,545
    
    
    
    6,776
    
    
    
    1,220
    
    
    
    7,996
    
    
    
    1,925
    
    
    
    (5,923
    )
    
    
    (3,998
    )Other assetsPesos
    
    
    7,288
    
    
    
    7,925
    
    
    
    15,213
    
    
    
    25,036
    
    
    
    17,068
    
    
    
    42,104
    
    
    
    (34,064
    )
    
    
    70,104
    
    
    
    36,040Dollars
    
    
    (9,763
    )
    
    
    16,760
    
    
    
    6,997
    
    
    
    (3,504
    )
    
    
    6,575
    
    
    
    3,071
    
    
    
    10,615
    
    
    
    12,593
    
    
    
    23,208Total
    
    
    (2,475
    )
    
    
    24,685
    
    
    
    22,210
    
    
    
    21,532
    
    
    
    23,643
    
    
    
    45,175
    
    
    
    (23,449
    )
    
    
    82,697
    
    
    
    59,248Total interest-earning
assetsPesos
    
    
    265,178
    
    
    
    111,139
    
    
    
    376,317
    
    
    
    595,335
    
    
    
    15,758
    
    
    
    611,093
    
    
    
    518,797
    
    
    
    365,992
    
    
    
    884,789Dollars
    
    
    2,425
    
    
    
    26,157
    
    
    
    28,582
    
    
    
    26,800
    
    
    
    41,364
    
    
    
    68,164
    
    
    
    56,755
    
    
    
    7,695
    
    
    
    64,450Total
    
    
    267,603
    
    
    
    137,296
    
    
    
    404,899
    
    
    
    622,135
    
    
    
    57,122
    
    
    
    679,257
    
    
    
    575,552
    
    
    
    373,687
    
    
    
    949,239LIABILITIESInterest-bearing
liabilitiesSavings accountsPesos
    
    
    2,364
    
    
    
    618
    
    
    
    2,982
    
    
    
    3,681
    
    
    
    (50
    )
    
    
    3,631
    
    
    
    3,513
    
    
    
    (1,318
    )
    
    
    2,195Dollars
    
    
    110
    
    
    
    47
    
    
    
    157
    
    
    
    176
    
    
    
    206
    
    
    
    382
    
    
    
    442
    
    
    
    (778
    )
    
    
    (336
    )Total
    
    
    2,474
    
    
    
    665
    
    
    
    3,139
    
    
    
    3,857
    
    
    
    156
    
    
    
    4,013
    
    
    
    3,955
    
    
    
    (2,096
    )
    
    
    1,859Certificates of
depositsPesos
    
    
    33,427
    
    
    
    20,583
    
    
    
    54,010
    
    
    
    140,958
    
    
    
    27,938
    
    
    
    168,896
    
    
    
    262,038
    
    
    
    189,926
    
    
    
    451,964Dollars
    
    
    9,478
    
    
    
    7,004
    
    
    
    16,482
    
    
    
    8,254
    
    
    
    8,502
    
    
    
    16,756
    
    
    
    10,417
    
    
    
    5,630
    
    
    
    16,047Total
    
    
    42,905
    
    
    
    27,587
    
    
    
    70,492
    
    
    
    149,212
    
    
    
    36,440
    
    
    
    185,652
    
    
    
    272,455
    
    
    
    195,556
    
    
    
    468,011Borrowings from the
Central BankPesos
    
    
    (7,587
    )
    
    
    3,422
    
    
    
    (4,165
    )
    
    
    6,565
    
    
    
    18,356
    
    
    
    24,921
    
    
    
    (4,044
    )
    
    
    413
    
    
    
    (3,631
    )Dollars
    
    
    
    
    
    
    (294
    )
    
    
    (294
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    (7,587
    )
    
    
    3,128
    
    
    
    (4,459
    )
    
    
    6,565
    
    
    
    18,356
    
    
    
    24,921
    
    
    
    (4,044
    )
    
    
    413
    
    
    
    (3,631
    )Borrowings from other
financial institutionsPesos
    
    
    3,855
    
    
    
    (1,376
    )
    
    
    2,479
    
    
    
    11,292
    
    
    
    792
    
    
    
    12,084
    
    
    
    (9,908
    )
    
    
    1,361
    
    
    
    (8,547
    )Dollars
    
    
    (5,405
    )
    
    
    13,810
    
    
    
    8,405
    
    
    
    3,680
    
    
    
    (9,676
    )
    
    
    (5,996
    )
    
    
    5,801
    
    
    
    (229
    )
    
    
    5,572Total
    
    
    (1,550
    )
    
    
    12,434
    
    
    
    10,884
    
    
    
    14,972
    
    
    
    (8,884
    )
    
    
    6,088
    
    
    
    (4,107
    )
    
    
    1,132
    
    
    
    (2,975
    )
  45




---



##### Table of Contents



December 2006/December 2005
    
    
    December 2007/December 2006
    
    
    December 2008/December 2007Increase (Decrease) Due to
    
    
    Increase (Decrease) Due to
    
    
    Increase (Decrease) Due toChanges in
    
    
    Changes in
    
    
    Changes inNet
    
    
    
    
    
    
    
    
    
    
    Net
    
    
    
    
    
    
    
    
    
    
    NetVolume
    
    
    Rate
    
    
    Change
    
    
    Volume
    
    
    Rate
    
    
    Change
    
    
    Volume
    
    
    Rate
    
    
    Change(in thousand of pesos)Corporate BondsPesos
    
    
    (1,535
    )
    
    
    588
    
    
    
    (947
    )
    
    
    18,403
    
    
    
    (336
    )
    
    
    18,067
    
    
    
    14,443
    
    
    
    530
    
    
    
    14,973Dollars
    
    
    1,612
    
    
    
    
    
    
    
    1,612
    
    
    
    82,785
    
    
    
    2,047
    
    
    
    84,832
    
    
    
    (280
    )
    
    
    (2,253
    )
    
    
    (2,533
    )Total
    
    
    77
    
    
    
    588
    
    
    
    665
    
    
    
    101,188
    
    
    
    1,711
    
    
    
    102,899
    
    
    
    14,163
    
    
    
    (1,723
    )
    
    
    12,440Other liabilitiesPesos
    
    
    9,373
    
    
    
    8,032
    
    
    
    17,405
    
    
    
    15,331
    
    
    
    268
    
    
    
    15,599
    
    
    
    2,492
    
    
    
    5,940
    
    
    
    8,432Dollars
    
    
    74
    
    
    
    (7,409
    )
    
    
    (7,335
    )
    
    
    269
    
    
    
    3,228
    
    
    
    3,497
    
    
    
    (18,757
    )
    
    
    19,470
    
    
    
    713Total
    
    
    9,447
    
    
    
    623
    
    
    
    10,070
    
    
    
    15,600
    
    
    
    3,496
    
    
    
    19,096
    
    
    
    (16,265
    )
    
    
    25,410
    
    
    
    9,145Total interest-bearing
liabilitiesPesos
    
    
    39,898
    
    
    
    31,866
    
    
    
    71,764
    
    
    
    196,230
    
    
    
    46,968
    
    
    
    243,198
    
    
    
    268,534
    
    
    
    196,852
    
    
    
    465,386Dollars
    
    
    5,869
    
    
    
    13,158
    
    
    
    19,027
    
    
    
    95,164
    
    
    
    4,307
    
    
    
    99,471
    
    
    
    (2,377
    )
    
    
    21,840
    
    
    
    19,463Total
    
    
    45,767
    
    
    
    45,024
    
    
    
    90,791
    
    
    
    291,394
    
    
    
    51,275
    
    
    
    342,669
    
    
    
    266,157
    
    
    
    218,692
    
    
    
    484,849
 Interest-earning assets: net interest margin and spread
  Year Ended December 31,2006
    
    
    2007
    
    
    2008(in thousands of pesos, except percentages)Average interest-earning assetsPesos
    
    
    8,710,789
    
    
    
    13,521,740
    
    
    
    16,410,845Dollars
    
    
    1,866,633
    
    
    
    2,395,839
    
    
    
    3,174,716Total
    
    
    10,577,422
    
    
    
    15,917,579
    
    
    
    19,585,561Net interest income (1)Pesos
    
    
    748,699
    
    
    
    1,116,594
    
    
    
    1,535,997Dollars
    
    
    2,983
    
    
    
    (28,324
    )
    
    
    16,663Total
    
    
    751,682
    
    
    
    1,088,270
    
    
    
    1,552,660Net interest margin (2)Pesos
    
    
    8.60
    %
    
    
    8.26
    %
    
    
    9.36
    %Dollars
    
    
    0.16
    %
    
    
    (1.18
    )%
    
    
    0.52
    %Weighted average rate
    
    
    7.11
    %
    
    
    6.84
    %
    
    
    7.93
    %Yield spread nominal basis (3)Pesos
    
    
    6.33
    %
    
    
    5.68
    %
    
    
    5.97
    %Dollars
    
    
    0.22
    %
    
    
    0.42
    %
    
    
    0.90
    %Weighted average rate
    
    
    5.51
    %
    
    
    5.12
    %
    
    
    5.51
    %
 (1)
    
    Defined as interest earned less interest paid. Trading results from our portfolio of government
securities are included in interest.(2)
    
    Net interest income stated as a percentage of average interest-earning assets.(3)
    
    Defined as the difference between the average nominal rate on interest-earning assets
and the average nominal
rate on interest- bearing liabilities. Investment portfolio: government and private securities
 As of December 31,2006 (1)
    
    
    2007 (1)
    
    
    2008(in thousands of pesos)Government SecuritiesIn Pesos:Holdings in Investment AccountsConsolidation bonds of social security payable  Third series
at 2% and Fourth series
    
    
    
    
    
    
    
    
    
    
    83,847Secured bonds Decree 1,579/02
    
    
    
    
    
    
    
    
    
    
    23,769Discount bonds  Maturity 2033
    
    
    
    
    
    
    
    
    
    
    22,201Consolidation bonds  Sixth series
    
    
    
    
    
    
    
    
    
    
    4,122Federal Government bonds  Maturity 2014
    
    
    
    
    
    
    
    
    
    
    3,582Subtotal Holdings in Investment Accounts
    
    
    
    
    
    
    
    
    
    
    137,521
  46




---



##### Table of Contents



As of December 31,2006 (1)
    
    
    2007 (1)
    
    
    2008(in thousands of pesos)Holdings for Trading or IntermediationConsolidation bonds of social security payable
    
    
    4,151
    
    
    
    70,670
    
    
    
    3,604Secured Bonds Decree 1,579/02
    
    
    36,414
    
    
    
    38,299
    
    
    
    652Discount Bonds  Maturity 2033
    
    
    4,143
    
    
    
    18,746
    
    
    
    209,277Federal Government Bonds  Maturity 2007, 2008, 2013 and 2014
    
    
    104,502
    
    
    
    13,840
    
    
    
    Consolidation Bonds
    
    
    1,971
    
    
    
    10,236
    
    
    
    8,479Province of
Tucumán Bonds  maturity 2018
    
    
    1,905
    
    
    
    2,828
    
    
    
    Par Bonds, maturity: 2038
    
    
    439
    
    
    
    1,590
    
    
    
    181GDP-Related Securities  Maturity 2035
    
    
    2,337
    
    
    
    1,109
    
    
    
    96Quasi-Par Securities  Maturity 2045
    
    
    2,920
    
    
    
    
    
    
    
    Other
    
    
    298
    
    
    
    197
    
    
    
    82Subtotal Holdings for Trading or Intermediation
    
    
    159,080
    
    
    
    157,515
    
    
    
    222,371Unlisted Government SecuritiesArgentine Government bonds  Maturity 2013
    
    
    
    
    
    
    
    
    
    
    51,864Federal Government Bonds   Maturity 2013
    
    
    13,254
    
    
    
    11,987
    
    
    
    10,385Province of Tucuman bonds  Maturity 2018
    
    
    
    
    
    
    
    
    
    
    2,290Other
    
    
    18
    
    
    
    52
    
    
    
    Subtotal Unlisted Government Securities
    
    
    13,272
    
    
    
    12,039
    
    
    
    64,539Instruments Issued by Central BankListed Central Bank bills and notes (Lebacs/Nobacs)
    
    
    2,787,019
    
    
    
    3,478,246
    
    
    
    772,496Unlisted Central Bank bills and notes (Lebacs/Nobacs)
    
    
    
    
    
    
    
    
    
    
    3,066,415Subtotal Instruments Issued by Central Bank
    
    
    2,787,019
    
    
    
    3,478,246
    
    
    
    3,838,911Total Government Securities in pesos
    
    
    2,959,371
    
    
    
    3,647,800
    
    
    
    4,263,342In Foreign Currency:Holdings in Investment AccountsFederal Government bonds  Maturity 2012 and 2013
    
    
    
    
    
    
    
    
    
    
    236,110Federal Government bonds at 7%  Maturity 2015
    
    
    
    
    
    
    
    
    
    
    49,590Federal Government bonds at 7%  Maturity 2017
    
    
    
    
    
    
    
    
    
    
    23,252Par bonds  Maturity 2038, (governed by Arg. Legislation)
    
    
    
    
    
    
    
    
    
    
    1,450Par bonds-Maturity 2038, (governed by New York legislation)
    
    
    
    
    
    
    
    
    
    
    382Subtotal Holdings in Investment Accounts
    
    
    
    
    
    
    
    
    
    
    310,784Holding for Trading or IntermediationTreasury Bills  Maturity 2007 and 2008
    
    
    31,276
    
    
    
    
    
    
    
    Federal Government Bonds  Maturity 2012 and 2013
    
    
    111,263
    
    
    
    145,269
    
    
    
    98,719Argentine Government Bonds at 7%  Maturity 2017
    
    
    
    
    
    
    45,954
    
    
    
    1,633Province of Mendoza  Maturity 2018
    
    
    
    
    
    
    7,533
    
    
    
    Argentine Government Bonds at 7%  Maturity 2015
    
    
    
    
    
    
    
    
    
    
    9,627Argentine
Government Bonds at 7%  Maturity 2011
    
    
    2,128
    
    
    
    1,462
    
    
    
    1,565Par Bonds, Maturity: 2038
    
    
    280
    
    
    
    368
    
    
    
    255Discount bonds-Governed by NY State legislation
    
    
    
    
    
    
    
    
    
    
    9,975Discount bonds-Governed by Argentine Legislation
    
    
    
    
    
    
    
    
    
    
    161Other
    
    
    38
    
    
    
    298
    
    
    
    161Subtotal Holding for Trading or Intermediation
    
    
    144,985
    
    
    
    200,884
    
    
    
    122,096Unlisted Government SecuritiesProvince of Tucuman Bonds -Maturity 2015
    
    
    169
    
    
    
    8,112
    
    
    
    5,419Subtotal Unlisted Government Securities
    
    
    169
    
    
    
    8,112
    
    
    
    5,419Total Government Securities in foreign currency
    
    
    145,154
    
    
    
    208,996
    
    
    
    438,299Total Government Securities
    
    
    3,104,525
    
    
    
    3,856,796
    
    
    
    4,701,641Investments in Listed Private SecuritiesIn Pesos:Mutual Funds
    
    
    11,437
    
    
    
    11,617
    
    
    
    5,544Shares
    
    
    1,445
    
    
    
    2,971
    
    
    
    378Debt Securities in Financial Trusts
    
    
    1,035
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    
    
    
    
    1In Foreign Currency:Mutual Funds
    
    
    17,925
    
    
    
    19,690
    
    
    
    8,133Commercial Paper
    
    
    
    
    
    
    30,402
    
    
    
    Corporate Bonds
    
    
    80,482
    
    
    
    23,595
    
    
    
    63,629Shares
    
    
    6,135
    
    
    
    5,681
    
    
    
    Total listed and private Securities
    
    
    118,459
    
    
    
    93,956
    
    
    
    77,685Total Government and Private Securities
    
    
    3,222,984
    
    
    
    3,950,752
    
    
    
    4,779,326
  47




---



##### Table of Contents



As of December 31,2006 (1)
    
    
    2007 (1)
    
    
    2008(in thousands of pesos)Investments in Unlisted Private SecuritiesIn Pesos:Certificates of Participation in Financial Trusts (2)
    
    
    413,612
    
    
    
    438,331
    
    
    
    304,660Debt Securities in Financial Trusts
    
    
    90,133
    
    
    
    77,030
    
    
    
    185,381Corporate Bonds (3) (4)
    
    
    534
    
    
    
    190
    
    
    
    22,390In Foreign Currency:Certificates of Participation in Financial Trusts (2)
    
    
    38,100
    
    
    
    33,611
    
    
    
    33,149Corporate Bonds (3) (4)
    
    
    12,127
    
    
    
    44,067
    
    
    
    60,104Debt Securities in financial Trust
    
    
    
    
    
    
    
    
    
    
    41,766Total Investments in Unlisted Private Securities
    
    
    554,506
    
    
    
    593,229
    
    
    
    647,450Total
    
    
    3,777,490
    
    
    
    4,543,981
    
    
    
    5,426,776
 (1)
    
    See note 4.2. to our audited consolidated financial statements for the year ended
December 31, 2008.(2)
    
    The bank booked allowances for impairment in value amounting to 223,893, 203,797 and
169,097 as of December 31, 2008, 2007 and 2006 respectively.(3)
    
    The bank booked allowances for impairment in value amounting to 319 as of December 31,
2008.(4)
    
    Includes Repurchased Corporate Bonds by Ps. 9,051 and US$ 20,054. Remaining maturity of government and private securities
  MaturingAfter
    
    
    After1 year
    
    
    5 yearsWithin
    
    
    but within
    
    
    but within
    
    
    After 10
    
    
    Without1 year
    
    
    5 years
    
    
    10 years
    
    
    years
    
    
    due date
    
    
    TotalBook value (in thousands of pesos)In Pesos:Holding in Investment accountsConsolidation Bonds of Social Security payables
Third series at 2 % and Fourth series
    
    
    71,481
    
    
    
    11,785
    
    
    
    581
    
    
    
    
    
    
    
    
    
    
    
    83,847Secured Bonds Decree 1,579/02
    
    
    1,398
    
    
    
    8,273
    
    
    
    14,098
    
    
    
    
    
    
    
    
    
    
    
    23,769Discount Bonds  Maturity 2033
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,201
    
    
    
    
    
    
    
    22,201Consolidation bonds  Sixth series
    
    
    
    
    
    
    
    
    
    
    1,950
    
    
    
    2,172
    
    
    
    
    
    
    
    4,122Federal
Government bonds  Maturity 2014
    
    
    
    
    
    
    2,686
    
    
    
    896
    
    
    
    
    
    
    
    
    
    
    
    3,582Holding for Trading or Intermediation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    ,Consolidation bonds of social security payables
    
    
    2,337
    
    
    
    1,164
    
    
    
    103
    
    
    
    
    
    
    
    
    
    
    
    3,604Secured bonds Decree 1,579/02
    
    
    38
    
    
    
    227
    
    
    
    387
    
    
    
    
    
    
    
    
    
    
    
    652Discount
bonds  Maturity 2033
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    209,277
    
    
    
    
    
    
    
    209,277Consolidation bonds
    
    
    3,800
    
    
    
    4,232
    
    
    
    441
    
    
    
    6
    
    
    
    
    
    
    
    8,479Par bonds
 Maturity 2038
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    181
    
    
    
    
    
    
    
    181GDP-Related
securities  maturity 2035
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    96
    
    
    
    
    
    
    
    96Other
    
    
    55
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27
    
    
    
    82Unlisted Government SecuritiesFederal Government Bonds (maturity 2013)
    
    
    3,462
    
    
    
    6,923
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,385Argentine Government bonds at private Badlar
+3.5  Maturity 2013
    
    
    
    
    
    
    51,864
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51,864Province of
Tucuman bonds  Maturity 2018
    
    
    103
    
    
    
    809
    
    
    
    1,378
    
    
    
    
    
    
    
    
    
    
    
    2,290Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Instruments Issued by the Central Bank(1)Listed Central Bank Internal Notes
    
    
    673,268
    
    
    
    99,228
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    772,496Listed Central Bank Internal Bills
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Unlisted Central Bank Notes
    
    
    2,425,592
    
    
    
    214,860
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,640,452Unlisted Central Bank Internal Bills
    
    
    425,963
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    425,963Total Government securities in pesos
    
    
    3,607,497
    
    
    
    402,051
    
    
    
    19,834
    
    
    
    233,933
    
    
    
    27
    
    
    
    4,263,342In Foreign Currency:Holding en Investment AccountsFederal
Government bonds at Libor  Maturity 2012
    
    
    58,998
    
    
    
    177,112
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    236,110Federal
Government bonds at 7%  Maturity 2015
    
    
    
    
    
    
    
    
    
    
    49,590
    
    
    
    
    
    
    
    
    
    
    
    49,590Federal
Government bonds at 7%  Maturity 2017
    
    
    
    
    
    
    
    
    
    
    23,252
    
    
    
    
    
    
    
    
    
    
    
    23,252Par bonds  Maturity 2038 (governed by Arg.
Legislation)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,450
    
    
    
    
    
    
    
    1,450Par bonds
 Maturity 2038 (governed by New York
legislation)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    382
    
    
    
    
    
    
    
    382
  48




---



##### Table of Contents



MaturingAfter
    
    
    After1 year
    
    
    5 yearsWithin
    
    
    but within
    
    
    but within
    
    
    After 10
    
    
    Without1 year
    
    
    5 years
    
    
    10 years
    
    
    years
    
    
    due date
    
    
    TotalBook value (in thousands of pesos)Holding for Trading or IntermediationFederal Government Bonds (maturity 2012 and 2013)
    
    
    24,565
    
    
    
    74,154
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    98,719Argentine Government Bonds at 7% (maturity 2017)
    
    
    
    
    
    
    
    
    
    
    1,633
    
    
    
    
    
    
    
    
    
    
    
    1,633Argentine Government bonds at 7%  Maturity 2011
    
    
    
    
    
    
    1,565
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,565Par Bonds  maturity 2038
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    255
    
    
    
    
    
    
    
    255Discount
bonds  Governed by NY State Legislation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,975
    
    
    
    
    
    
    
    9,975Discount bonds  Governed by Argentine Legislation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    161
    
    
    
    
    
    
    
    161Argentine government bonds at 7%  Maturity 2015
    
    
    
    
    
    
    
    
    
    
    9,627
    
    
    
    
    
    
    
    
    
    
    
    9,627Other
    
    
    7
    
    
    
    
    
    
    
    
    
    
    
    154
    
    
    
    
    
    
    
    161Unlisted Government SecuritiesProvince of Tucumán Bonds   Maturity 2015
    
    
    775
    
    
    
    3,096
    
    
    
    1,548
    
    
    
    
    
    
    
    
    
    
    
    5,419Total Government securities in foreign currency
    
    
    84,345
    
    
    
    255,927
    
    
    
    85,650
    
    
    
    12,377
    
    
    
    
    
    
    
    438,299Total Government securities
    
    
    3,691,842
    
    
    
    657,978
    
    
    
    105,484
    
    
    
    246,310
    
    
    
    27
    
    
    
    4,701,641Private SecuritiesInvestments in listed private securitiesIn Pesos:Mutual Funds
    
    
    5,544
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,544Shares
    
    
    378
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    378Other
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1In foreign currency:Commercial Paper
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Corporate bonds
    
    
    37,927
    
    
    
    25,702
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    63,629Mutual Funds
    
    
    8,133
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,133Shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investments in unlisted private securitiesIn Pesos:Certificates of Participation in Financial
Trusts (2)
    
    
    1,963
    
    
    
    6,018
    
    
    
    
    
    
    
    61,996
    
    
    
    234,683
    
    
    
    304,660Debt Securities in Financial Trusts
    
    
    167,246
    
    
    
    18,135
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    185,381Corporate Bonds (3) (4)
    
    
    22,200
    
    
    
    190
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,390In foreign currency:Certificates of Participation in Financial Trusts
    
    
    
    
    
    
    33,149
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    33,149Debt Securities in Financial Trust (2)
    
    
    
    
    
    
    41,766
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,766Corporate Bonds (3) (4)
    
    
    35,153
    
    
    
    23,487
    
    
    
    1,464
    
    
    
    
    
    
    
    
    
    
    
    60,104Total Private securities
    
    
    278,545
    
    
    
    148,447
    
    
    
    1,464
    
    
    
    61,996
    
    
    
    234,683
    
    
    
    725,135
 (1)
    
    As of December 31, 2008, Instruments Issued by B.C.R.A. includes Ps. 420,303 to fall
due in 30 days, Ps. 655,353 to fall due in 60 days, Ps. 1,653,296 to fall due from 60 to
180 days, Ps. 795,871 to fall due from 181 to 365 days and Ps.314,088 more than 365
days.(2)
    
    The bank booked allowances for impairment in value amounting to 223,893 as of December
31, 2008(3)
    
    The bank booked allowances for impairment in value amounting to 319 as of December 31,
2008.(4)
    
    Includes Repurchased Corporate Bonds by Ps. 9,051 and US$ 20,054. Loan portfolio
  As of December 31,2006 (1)
    
    
    2007
    
    
    2008(in thousands of pesos)To the non-financial government sector
    
    
    774,273
    
    
    
    732,481
    
    
    
    744,507To the financial sector (2)
    
    
    436,930
    
    
    
    161,702
    
    
    
    80,423To the non-financial private sector and foreign residentsOverdrafts (3)
    
    
    1,029,679
    
    
    
    1,375,075
    
    
    
    1,556,433Documents (4)
    
    
    618,739
    
    
    
    1,213,669
    
    
    
    1,348,585Mortgages loans
    
    
    426,138
    
    
    
    619,781
    
    
    
    738,592Pledged loans (5)
    
    
    300,949
    
    
    
    347,989
    
    
    
    339,895Consumer loans (6)
    
    
    1,928,977
    
    
    
    3,929,579
    
    
    
    4,675,543Other loans
    
    
    1,131,315
    
    
    
    1,718,978
    
    
    
    2,071,927Less: Unearned discount
    
    
    (12,919
    )
    
    
    (23,248
    )
    
    
    (32,596
    )Less: Unposted payment
    
    
    (139
    )
    
    
    (69
    )
    
    
    (29
    )Plus: Interest, adjustments, and listed price differences accrued funding collection
    
    
    101,744
    
    
    
    153,902
    
    
    
    195,026Less: Allowances
    
    
    (208,581
    )
    
    
    (220,422
    )
    
    
    (438,348
    )Total Loans
    
    
    6,527,105
    
    
    
    10,009,417
    
    
    
    11,279,958
 (1)
    
    See note 4.2. to our audited consolidated financial statements for the year ended December 31,
2008.(2)
    
    Includes loans to financial institutions.  49




---



##### Table of Contents



(3)
    
    Overdrafts include overdraft lines of credit resulting from checking accounts.(4)
    
    Includes the face values of drafts, promissory notes and other bills transferred to us by
endorsement for which the assignor is liable, whenever the latter is an Argentine resident within
the financial sector. The difference between the face value of the bill and the amount effectively
disbursed will be credited to Loans In Argentine pesos-Argentine residents-Financial
Sector-Principals-(Unearned discount).(5)
    
    Includes the principal amounts actually lent of automobile and other collateral granted, for
which the obligator is part of the non-financial private sector.(6)
    
    Consumer loans include credit card loans and other consumer loans. Overdrafts to individuals
are included under Overdrafts. Maturity composition of the loan portfolio
  MaturingAfter1 Year butAmount as of
    
    
    Within
    
    
    Within
    
    
    AfterDecember 31, 2008
    
    
    1 Year
    
    
    5 Years
    
    
    5 Years(in thousands of pesos, except percentages)To the non-financial government sector
    
    
    744,507
    
    
    
    222,043
    
    
    
    285,028
    
    
    
    237,436To the financial sector (1)
    
    
    80,423
    
    
    
    79,681
    
    
    
    742
    
    
    
    To the non-financial private sector and foreign residentsOverdrafts (2)
    
    
    1,595,835
    
    
    
    1,592,323
    
    
    
    3,512
    
    
    
    Documents (3)
    
    
    1,358,264
    
    
    
    1,294,208
    
    
    
    61,159
    
    
    
    2,897Mortgages loans
    
    
    760,052
    
    
    
    163,863
    
    
    
    376,765
    
    
    
    219,424Pledged loans (4)
    
    
    354,612
    
    
    
    170,161
    
    
    
    184,387
    
    
    
    64Consumer loans (5)
    
    
    4,718,327
    
    
    
    2,064,974
    
    
    
    2,604,165
    
    
    
    49,188Other loans
    
    
    2,106,286
    
    
    
    1,597,753
    
    
    
    467,217
    
    
    
    41,316Total loans
    
    
    11,718,306
    
    
    
    7,185,006
    
    
    
    3,982,975
    
    
    
    550,325Percentage of total loan portfolio
    
    
    100
    %
    
    
    61
    %
    
    
    34
    %
    
    
    5
    %
 (1)
    
    Includes loans to financial institutions.(2)
    
    Overdrafts include overdrafts lines of credit resulting from checking accounts.(3)
    
    Includes the face value of drafts, promissory notes and other bills transferred to us by
endorsement for which the assignor is liable, whenever the latter is an Argentine resident within
the financial sector. The difference between the face value of the bill and the amount effectively
disbursed will be credited Loans-In Argentina Pesos-Argentine residents-Financial
sector-Principals-(Unearned discount).(4)
    
    Includes the principal amount actually lent of automobile and other collateral granted, for
which the obligor is part of the non-financial private sector.(5)
    
    Consumer loans include credit card loans and other consumer loans. Overdrafts to individuals
are included under Overdrafts. Loansportfolio classification
  As of December 31,2006
    
    
    %
    
    
    2007
    
    
    %
    
    
    2008
    
    
    %Loan PortfolioCategories1   In normal situation/ performing
    
    
    6,550,389
    
    
    
    97.25
    %
    
    
    9,927,876
    
    
    
    97.05
    %
    
    
    11,292,177
    
    
    
    96.36
    %2 
Subject to special monitoring  in
observation  in negotiation or subject to
refinancing agreements/ low risk
    
    
    50,077
    
    
    
    0.74
    %
    
    
    143,128
    
    
    
    1.40
    %
    
    
    117,023
    
    
    
    1.00
    %3   Troubled/Medium risk
    
    
    45,603
    
    
    
    0.68
    %
    
    
    52,059
    
    
    
    0.51
    %
    
    
    86,288
    
    
    
    0.74
    %4   With high risk of insolvency/ High risk
    
    
    34,503
    
    
    
    0.51
    %
    
    
    62,856
    
    
    
    0.61
    %
    
    
    172,949
    
    
    
    1.48
    %5   Irrecoverable
    
    
    51,086
    
    
    
    0.76
    %
    
    
    36,526
    
    
    
    0.36
    %
    
    
    48,434
    
    
    
    0.41
    %6   Irrecoverable according to Central
Banks rules
    
    
    4,028
    
    
    
    0.06
    %
    
    
    7,394
    
    
    
    0.07
    %
    
    
    1,435
    
    
    
    0.01
    %Total loans
    
    
    6,735,686
    
    
    
    100
    %
    
    
    10,229,839
    
    
    
    100
    %
    
    
    11,718,306
    
    
    
    100
    %
  50




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##### Table of Contents



Analysis of the allowance for loan losses
  Year Ended December 31,2004
    
    
    2005
    
    
    2006
    
    
    2007
    
    
    2008(in thousands of pesos, except percentages)Balance at the beginning of the year
    
    
    56,279
    
    
    
    225,340
    
    
    
    247,532
    
    
    
    208,581
    
    
    
    220,422Provisions for loan losses
    
    
    201,253
    (3)
    
    
    142,045
    (4)
    
    
    102,538
    (5)
    
    
    93,498
    
    
    
    314,532Write offs and reversals
    
    
    (32,192
    )
    
    
    (119,853
    )
    
    
    (141,489
    )
    
    
    (81,657
    )
    
    
    (96,606
    )Overdrafts
    
    
    (4,374
    )
    
    
    (4,777
    )
    
    
    (31,584
    )
    
    
    (13,889
    )
    
    
    (9,314
    )Personal loans
    
    
    (3,181
    )
    
    
    (1,657
    )
    
    
    (4,411
    )
    
    
    (10,929
    )
    
    
    (47,527
    )Credit Cards
    
    
    (865
    )
    
    
    (993
    )
    
    
    (2,184
    )
    
    
    (5,751
    )
    
    
    (12,134
    )Mortgage loans
    
    
    (1,252
    )
    
    
    (41,518
    )
    
    
    (25,825
    )
    
    
    (8,071
    )
    
    
    (5,087
    )Pledge loans
    
    
    (7,185
    )
    
    
    (26,758
    )
    
    
    (4,323
    )
    
    
    (674
    )
    
    
    (2,686
    )Documents
    
    
    (8,696
    )
    
    
    (25,469
    )
    
    
    (39,974
    )
    
    
    (6,931
    )
    
    
    (5,296
    )Other
    
    
    (6,639
    )
    
    
    (18,681
    )
    
    
    (33,188
    )
    
    
    (35,412
    )
    
    
    (14,562
    )Balance at the end of year
    
    
    225,340
    
    
    
    247,532
    
    
    
    208,581
    
    
    
    220,422
    
    
    
    438,348Charge-off/average loans (1)
    
    
    2.22
    %
    
    
    2.22
    %
    
    
    1.15
    %
    
    
    1.16
    %
    
    
    2.67
    %Net charge-off/average loans (2)
    
    
    1.29
    %
    
    
    (0.78
    )%
    
    
    (1.14)
    %
    
    
    (0.47
    )%
    
    
    1.82
    %
 (1)
    
    Defined as charge-offs plus direct charge-offs divided by average loans.(2)
    
    Defined as charge-offs plus direct charge-offs minus bad debts recovered and reversals
divided by average loans.(3)
    
    Includes Ps. 143,457 thousand of Nuevo Banco Suquía.(4)
    
    Includes Ps. 74,775 thousand for the incorporation of Banco Empresario de Tucumán.(5)
    
    Includes Ps. 13,993 thousand and Ps. 28,443 thousand for the incorporations of Banco del
Tucumán and Nuevo Banco Bisel, respectively. Allocation of the allowances for loan losses
  Year Ended December 31,2006
    
    
    2007
    
    
    2008(in thousands of pesos, except percentages)Overdrafts
    
    
    24,987
    
    
    
    11.98
    %
    
    
    25,510
    
    
    
    11.57
    %
    
    
    64,107
    
    
    
    14.62
    %Documents
    
    
    20,326
    
    
    
    9.75
    %
    
    
    23,215
    
    
    
    10.53
    %
    
    
    42,003
    
    
    
    9.58
    %Mortgage loans
    
    
    22,640
    
    
    
    10.86
    %
    
    
    20,210
    
    
    
    9.17
    %
    
    
    26,378
    
    
    
    6.02
    %Pledged loans
    
    
    8,433
    
    
    
    4.04
    %
    
    
    8,608
    
    
    
    3.91
    %
    
    
    9,512
    
    
    
    2.17
    %Personal loans
    
    
    40,364
    
    
    
    19.35
    %
    
    
    70,375
    
    
    
    31.93
    %
    
    
    174,398
    
    
    
    39.79
    %Credit cards
    
    
    12,752
    
    
    
    6.11
    %
    
    
    17,658
    
    
    
    8.01
    %
    
    
    34,281
    
    
    
    7.82
    %Other
    
    
    79,079
    
    
    
    37.91
    %
    
    
    54,846
    
    
    
    24.88
    %
    
    
    87,669
    
    
    
    20.00
    %TOTAL
    
    
    208,581
    
    
    
    100
    %
    
    
    220,422
    
    
    
    100
    %
    
    
    438,348
    
    
    
    100
    %
 Loans by Economic Activities
  2006
    
    
    2007
    
    
    2008Loan
    
    
    % of Loan
    
    
    Loan
    
    
    % of Loan
    
    
    Loan
    
    
    % of LoanPortfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio(in thousands of pesos, except percentages)Retail Loans
    
    
    1,719,736
    
    
    
    25.53
    %
    
    
    3,410,359
    
    
    
    33.34
    %
    
    
    4,023,725
    
    
    
    34.34
    %Agricultural livestock-
Forestry- Fishing- Mining-
Hunting
    
    
    650,405
    
    
    
    9.66
    %
    
    
    1,050,102
    
    
    
    10.27
    %
    
    
    1,538,027
    
    
    
    13.12
    %Governmental services
    
    
    844,814
    
    
    
    12.54
    %
    
    
    861,852
    
    
    
    8.42
    %
    
    
    886,749
    
    
    
    7.57
    %Other services
    
    
    474,325
    
    
    
    7.04
    %
    
    
    970,585
    
    
    
    9.49
    %
    
    
    852,658
    
    
    
    7.28
    %Retail and consumer products
    
    
    550,359
    
    
    
    8.17
    %
    
    
    703,063
    
    
    
    6.87
    %
    
    
    831,741
    
    
    
    7.10
    %Chemicals
    
    
    300,429
    
    
    
    4.46
    %
    
    
    340,450
    
    
    
    3.33
    %
    
    
    608,157
    
    
    
    5.19
    %Construction
    
    
    320,484
    
    
    
    4.76
    %
    
    
    411,725
    
    
    
    4.02
    %
    
    
    563,526
    
    
    
    4.81
    %Foodstuff and beverages
    
    
    537,905
    
    
    
    7.99
    %
    
    
    700,917
    
    
    
    6.85
    %
    
    
    521,849
    
    
    
    4.45
    %
  51




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##### Table of Contents



2006
    
    
    2007
    
    
    2008Loan
    
    
    % of Loan
    
    
    Loan
    
    
    % of Loan
    
    
    Loan
    
    
    % of LoanPortfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio(in thousands of pesos, except percentages)Financial Services
    
    
    593,423
    
    
    
    8.81
    %
    
    
    408,002
    
    
    
    3.99
    %
    
    
    289,450
    
    
    
    2.47
    %Manufacturing and wholesales
    
    
    147,127
    
    
    
    2.18
    %
    
    
    166,169
    
    
    
    1.62
    %
    
    
    283,555
    
    
    
    2.42
    %Real estate, business and leases
    
    
    39,087
    
    
    
    0.58
    %
    
    
    59,512
    
    
    
    0.58
    %
    
    
    267,604
    
    
    
    2.28
    %Transportation, storage and
communications
    
    
    195,094
    
    
    
    2.90
    %
    
    
    181,646
    
    
    
    1.78
    %
    
    
    263,999
    
    
    
    2.25
    %Electricity, oil, water
    
    
    31,061
    
    
    
    0.46
    %
    
    
    74,256
    
    
    
    0.73
    %
    
    
    170,950
    
    
    
    1.46
    %Hotels and restaurants
    
    
    43,196
    
    
    
    0.64
    %
    
    
    39,365
    
    
    
    0.38
    %
    
    
    32,325
    
    
    
    0.28
    %Other
    
    
    288,241
    
    
    
    4.28
    %
    
    
    851,836
    
    
    
    8.33
    %
    
    
    583,991
    
    
    
    4.98
    %Total
    
    
    6,735,686
    
    
    
    100.00
    %
    
    
    10,229,839
    
    
    
    100.00
    %
    
    
    11,718,306
    
    
    
    100.00
    %
 Composition of deposits
  Year ended December 31,2006
    
    
    2007
    
    
    2008(in thousands of pesos)Deposits in Domestic Bank OfficesNon-interest-bearing Demand Deposits (1)AveragePesos
    
    
    2,014,003
    
    
    
    3,067,834
    
    
    
    3,665,382Dollars
    
    
    3,266
    
    
    
    6,180
    
    
    
    8,044Total
    
    
    2,017,269
    
    
    
    3,074,014
    
    
    
    3,673,426Saving AccountsAveragePesos
    
    
    1,474,473
    
    
    
    2,486,927
    
    
    
    2,822,961Dollars
    
    
    184,617
    
    
    
    297,472
    
    
    
    361,324Total
    
    
    1,659,090
    
    
    
    2,784,399
    
    
    
    3,184,285Certificates of DepositsAveragePesos
    
    
    3,056,186
    
    
    
    4,589,993
    
    
    
    6,556,086Dollars
    
    
    909,362
    
    
    
    1,211,832
    
    
    
    1,490,885Total
    
    
    3,965,548
    
    
    
    5,801,825
    
    
    
    8,046,971Deposits in Foreign Bank OfficesNon-interest-bearing Demand DepositsAveragePesos
    
    
    465
    
    
    
    1,215
    
    
    
    513Dollars
    
    
    236
    
    
    
    500
    
    
    
    15Total
    
    
    701
    
    
    
    1,715
    
    
    
    528Saving AccountsAveragePesos
    
    
    
    
    
    
    
    
    
    
    Dollars
    
    
    31,559
    
    
    
    81,435
    
    
    
    90,568Total
    
    
    31,559
    
    
    
    81,435
    
    
    
    90,568Certificates of DepositsAverageDollars
    
    
    280,823
    
    
    
    226,009
    
    
    
    226,626Total
    
    
    280,823
    
    
    
    226,009
    
    
    
    226,626
 (1)
    
    Non-interest-bearing demand deposits consist of checking accounts.  52




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##### Table of Contents



Maturity of deposits at December 31, 2008
  MaturingAfter 3
    
    
    After 6Within 3
    
    
    but Within
    
    
    but Within
    
    
    After 12Total
    
    
    Months
    
    
    6 Months
    
    
    12 Months
    
    
    Months(in thousands of pesos)Checking accounts
    
    
    3,566,625
    
    
    
    3,566,625
    
    
    
    
    
    
    
    
    
    
    
    Savings accounts
    
    
    2,881,686
    
    
    
    2,881,686
    
    
    
    
    
    
    
    
    
    
    
    Time deposits
    
    
    8,745,500
    
    
    
    7,216,637
    
    
    
    615,522
    
    
    
    910,906
    
    
    
    2,435Investment accounts
    
    
    262,523
    
    
    
    121,685
    
    
    
    28,512
    
    
    
    105,248
    
    
    
    7,078Other
    
    
    372,023
    
    
    
    368,771
    
    
    
    1,065
    
    
    
    2,187
    
    
    
    Total
    
    
    15,828,357
    
    
    
    14,155,404
    
    
    
    645,099
    
    
    
    1,018,341
    
    
    
    9,513
 Maturity of deposits at December 31, 2008 of outstanding time deposits and investment accounts
  MaturingAfter 3
    
    
    After 6Within 3
    
    
    but Within
    
    
    but Within
    
    
    After 12Total
    
    
    Months
    
    
    6 Months
    
    
    12 Months
    
    
    Months(in thousands of pesos)Domestic bank offices
    
    
    6,134,706
    
    
    
    4,561,513
    
    
    
    559,671
    
    
    
    1,004,853
    
    
    
    8,669Foreign bank offices
    
    
    201,134
    
    
    
    193,348
    
    
    
    6,353
    
    
    
    1,433
    
    
    
    0Total
    
    
    6,335,840
    
    
    
    4,754,861
    
    
    
    566,024
    
    
    
    1,006,286
    
    
    
    8,669
 Short-term borrowings
  Year Ended December 31,2006
    
    
    2007
    
    
    2008Annualized
    
    
    
    
    
    
    Annualized
    
    
    
    
    
    
    AnnualizedAmount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate(in thousands of pesos, except percentages)Central Bank of the
Argentine Republic:Total amount outstanding at
the end of the reported
period
    
    
    69,062
    
    
    
    1.95
    %
    
    
    72,526
    
    
    
    1.97
    %
    
    
    78,939
    
    
    
    1.95
    %Average during year
    
    
    51,248
    
    
    
    1.95
    %
    
    
    70,068
    
    
    
    1.97
    %
    
    
    76,023
    
    
    
    1.96
    %Maximum month-end balance
    
    
    69,062
    
    
    
    
    
    
    
    72,526
    
    
    
    
    
    
    
    78,939Banks and international
organizations:Total amount outstanding at
the end of the reported
period
    
    
    28,930
    
    
    
    5.97
    %
    
    
    7,279
    
    
    
    5.58
    %
    
    
    59,737
    
    
    
    4.92
    %Average during year (2)
    
    
    55,445
    
    
    
    6.08
    %
    
    
    125,827
    
    
    
    6.96
    %
    
    
    55,054
    
    
    
    4.38
    %Maximum month-end balance
    
    
    158,699
    
    
    
    
    
    
    
    166,178
    
    
    
    
    
    
    
    86,762Corporate BondsTotal amount outstanding at
the end of the reported
period
    
    
    
    
    
    
    
    
    
    
    18,947
    
    
    
    8.76
    %
    
    
    16,518
    
    
    
    9.46
    %Average during year (2)
    
    
    
    
    
    
    
    
    
    
    15,343
    
    
    
    8.97
    %
    
    
    16,612
    
    
    
    9.45
    %Maximum month-end balance
    
    
    
    
    
    
    
    
    
    
    18,947
    
    
    
    
    
    
    
    17,063Financing received from
Argentine financial
institutions:Total amount outstanding at
the end of the reported
period
    
    
    27,721
    
    
    
    6.40
    %
    
    
    119,038
    
    
    
    6.75
    %
    
    
    31,846
    
    
    
    10.33
    %Average during year (2)
    
    
    10,627
    
    
    
    4.35
    %
    
    
    68,801
    
    
    
    6.56
    %
    
    
    96,294
    
    
    
    5.47
    %Maximum month-end balance
    
    
    27,721
    
    
    
    
    
    
    
    119,038
    
    
    
    
    
    
    
    166,146
  53




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##### Table of Contents



Year Ended December 31,2006
    
    
    2007
    
    
    2008Annualized
    
    
    
    
    
    
    Annualized
    
    
    
    
    
    
    AnnualizedAmount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate(in thousands of pesos, except percentages)Other (1)Total amount outstanding at
the end of the reported
period
    
    
    250,096
    
    
    
    
    
    
    
    412,975
    
    
    
    0.03
    %
    
    
    545,183
    
    
    
    0.02
    %Average during year (2)
    
    
    209,294
    
    
    
    
    
    
    
    341,471
    
    
    
    0.01
    %
    
    
    524,019
    
    
    
    0.02
    %Maximum month-end balance
    
    
    250,096
    
    
    
    
    
    
    
    412,161
    
    
    
    
    
    
    
    599,063Subordinated corporate bonds:Total amount outstanding at
the end of the reported
period
    
    
    45,150
    
    
    
    7.61
    %
    
    
    16,404
    
    
    
    8.03
    %
    
    
    2,740
    
    
    
    4.00
    %Average during year (2)
    
    
    29,835
    
    
    
    7.73
    %
    
    
    29,651
    
    
    
    8.25
    %
    
    
    21,056
    
    
    
    7.02
    %Maximum month-end balance
    
    
    54,588
    
    
    
    
    
    
    
    59,288
    
    
    
    
    
    
    
    36,987Total Short Term
    
    
    420,959
    
    
    
    
    
    
    
    647,169
    
    
    
    
    
    
    
    734,963
 (1)
    
    Includes liability to the Central Bank to acquire Boden 2012.(2)
    
    Average balances are calculated from month-end balances. Return on equity and assets
 Year Ended December 31,2006
    
    
    2007
    
    
    2008(in thousands of pesos, except percentages)Net income
    
    
    424,340
    
    
    
    495,200
    
    
    
    660,050Average total assets
    
    
    11,791,622
    
    
    
    17,686,455
    
    
    
    21,860,677Average shareholders equity
    
    
    1,915,245
    
    
    
    2,456,353
    
    
    
    2,773,259Shareholders equity at the end of the fiscal year
    
    
    2,315,097
    
    
    
    2,707,706
    
    
    
    2,816,597Net income as a percentage of:Average total assets
    
    
    3.60
    %
    
    
    2.80
    %
    
    
    3.02
    %Average shareholders equity
    
    
    22.16
    %
    
    
    20.16
    %
    
    
    23.80
    %Declared cash dividends
    
    
    68,395
    
    
    
    102,591
    
    
    
    170,995Dividend payout ratio (1)
    
    
    16.12
    %
    
    
    20,72
    %
    
    
    25.91
    %Average shareholders equity as a percentage of Average Total Assets
    
    
    16.24
    %
    
    
    13.89
    %
    
    
    12.69
    %
 (1)
    
    Declared cash dividends stated as percentage of net income when they are paid. Interest rate sensitivity
   Remaining Maturity at December 31, 2008Total0-1 Year
    
    
    1-5 Years
    
    
    5-10 Years
    
    
    Over 10 years
    
    
    Without due date
    
    
    (2)Interest-earning assets:Interest-bearing deposits in Central Bank
    
    
    2,059,041
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,059,041Interest-bearing deposits in other banks
    
    
    128,002
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    128,002Government Securities
    
    
    3,691,842
    
    
    
    657,978
    
    
    
    105,484
    
    
    
    246,310
    
    
    
    27
    
    
    
    4,701,641Goods in financial leasing
    
    
    144,887
    
    
    
    202,594
    
    
    
    13,300
    
    
    
    
    
    
    
    
    
    
    
    360,781Loans to non-financial government sector (1)
    
    
    222,043
    
    
    
    285,028
    
    
    
    221,651
    
    
    
    15,785
    
    
    
    
    
    
    
    744,507Loans to the private and financial sector (1)
    
    
    6,962,963
    
    
    
    3,697,947
    
    
    
    206,935
    
    
    
    105,954
    
    
    
    
    
    
    
    10,973,799Other assets
    
    
    264,490
    
    
    
    148,447
    
    
    
    1,464
    
    
    
    61,996
    
    
    
    234,683
    
    
    
    711,080Total Interest-Earning Assets
    
    
    13,473,268
    
    
    
    4,991,994
    
    
    
    548,834
    
    
    
    430,045
    
    
    
    234,710
    
    
    
    19,678,851
  54




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##### Table of Contents



Remaining Maturity at December 31, 2008Total0-1 Year
    
    
    1-5 Years
    
    
    5-10 Years
    
    
    Over 10 years
    
    
    Without due date
    
    
    (2)Interest-bearing liabilities:Checking
    
    
    264,194
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    264,194Savings accounts
    
    
    2,881,686
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,881,686Time deposits
    
    
    8,743,065
    
    
    
    2,428
    
    
    
    7
    
    
    
    
    
    
    
    
    
    
    
    8,745,500Investment accounts
    
    
    255,445
    
    
    
    7,078
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    262,523Corporate Bonds
    
    
    16,518
    
    
    
    303,321
    
    
    
    405,034
    
    
    
    
    
    
    
    
    
    
    
    724,873Subordinated corporate bonds
    
    
    2,740
    
    
    
    886
    
    
    
    
    
    
    
    518,055
    
    
    
    
    
    
    
    521,681Liabilities with Central Bank
    
    
    76,859
    
    
    
    223,396
    
    
    
    108
    
    
    
    317
    
    
    
    
    
    
    
    300,680Liabilities with local financial companies
    
    
    31,846
    
    
    
    15,516
    
    
    
    26,444
    
    
    
    
    
    
    
    
    
    
    
    73,806Liabilities with bank and international
Organizations
    
    
    59,737
    
    
    
    172,685
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    232,422Other liabilities
    
    
    60,729
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    60,729Total Interest-Bearing Liabilities
    
    
    12,392,819
    
    
    
    725,310
    
    
    
    431,593
    
    
    
    518,372
    
    
    
    
    
    
    
    14,068,094Asset (Liability) Gap
    
    
    1,080,449
    
    
    
    4,266,684
    
    
    
    117,241
    
    
    
    (88,327
    )
    
    
    234,710
    
    
    
    5,610,757Cumulative Asset/Liability Gap
    
    
    1,080,449
    
    
    
    5,347,133
    
    
    
    5,464,374
    
    
    
    5,376,047
    
    
    
    5,610,757Cumulative sensitivity gap as a percentage of
total interest-earning assets
    
    
    5.49
    %
    
    
    27.17
    %
    
    
    27.77
    %
    
    
    27.32
    %
    
    
    28,51
    %
 Remaining Maturity at December 31, 2008Total0-1 Year
    
    
    1-5 Years
    
    
    5-10 Years
    
    
    Over 10 years
    
    
    Without due date
    
    
    (2)Interest-earning assets in Pesos:Interest-bearing deposits in Central Bank
    
    
    1,392,307
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,392,307Interest-bearing deposits in other banks
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Government securities
    
    
    3,607,497
    
    
    
    402,051
    
    
    
    19,834
    
    
    
    233,933
    
    
    
    27
    
    
    
    4,263,342Goods in financial leasing
    
    
    134,643
    
    
    
    154,476
    
    
    
    2,474
    
    
    
    
    
    
    
    
    
    
    
    291,593Loans to non-financial government sector (1)
    
    
    222,043
    
    
    
    285,028
    
    
    
    221,651
    
    
    
    15,785
    
    
    
    
    
    
    
    744,507Loans to the private and financial sector (1)
    
    
    5,139,709
    
    
    
    3,424,983
    
    
    
    174,672
    
    
    
    105,954
    
    
    
    
    
    
    
    8,845,318Other assets
    
    
    191,410
    
    
    
    24,343
    
    
    
    
    
    
    
    61,996
    
    
    
    234,683
    
    
    
    512,432Total Interest-Earning Assets
    
    
    10,687,609
    
    
    
    4,290,881
    
    
    
    418,631
    
    
    
    417,668
    
    
    
    234,710
    
    
    
    16,049,499Interest-bearing liabilities in Pesos:Checking
    
    
    214,115
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    214,115Saving accounts
    
    
    2,465,078
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,465,078Time deposits
    
    
    6,788,003
    
    
    
    2,243
    
    
    
    7
    
    
    
    
    
    
    
    
    
    
    
    6,790,253Investment accounts
    
    
    246,651
    
    
    
    11
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    246,662Corporate bonds
    
    
    2,174
    
    
    
    303,321
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    305,495Subordinated corporate bonds
    
    
    916
    
    
    
    886
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,802Liabilities with Central Bank
    
    
    76,859
    
    
    
    223,396
    
    
    
    108
    
    
    
    317
    
    
    
    
    
    
    
    300,680Liabilities with local financial institutions
    
    
    29,482
    
    
    
    15,516
    
    
    
    26,444
    
    
    
    
    
    
    
    
    
    
    
    71,442Other liabilities
    
    
    60,729
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    60,729Total Interest-Bearing Liabilities
    
    
    9,884,007
    
    
    
    545,373
    
    
    
    26,559
    
    
    
    317
    
    
    
    
    
    
    
    10,456,256Asset(Liability) Gap
    
    
    803,602
    
    
    
    3,745,508
    
    
    
    392,072
    
    
    
    417,351
    
    
    
    234,710
    
    
    
    5,593,243Cumulative Asset/Liability Gap
    
    
    803,602
    
    
    
    4,549,110
    
    
    
    4,941,182
    
    
    
    5,358,533
    
    
    
    5,593,243Cumulative sensitivity gap as a percentage of
total interest-earning assets
    
    
    5.01
    %
    
    
    28.34
    %
    
    
    30.79
    %
    
    
    33.39
    %
    
    
    34.85
    %
 Remaining Maturity at December 31, 2008Without due
    
    
    Total0-1 Year
    
    
    1-5 Years
    
    
    5-10 Years
    
    
    Over 10 years
    
    
    date
    
    
    (2)Interest-earning assets in foreign currency:Interest-bearing deposits in Central Bank
    
    
    666,734
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    666,734Interest-bearing deposits in other banks
    
    
    128,002
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    128,002Government securities
    
    
    84,345
    
    
    
    255,927
    
    
    
    85,650
    
    
    
    12,377
    
    
    
    
    
    
    
    438,299Goods in financial leasing
    
    
    10,244
    
    
    
    48,118
    
    
    
    10,826
    
    
    
    
    
    
    
    
    
    
    
    69,188Loans to the private and financial sector (1)
    
    
    1,823,254
    
    
    
    272,964
    
    
    
    32,263
    
    
    
    
    
    
    
    
    
    
    
    2,128,481Other assets
    
    
    73,080
    
    
    
    124,104
    
    
    
    1,464
    
    
    
    
    
    
    
    
    
    
    
    198,648Total Interest-Earning Assets
    
    
    2,785,659
    
    
    
    701,113
    
    
    
    130,203
    
    
    
    12,377
    
    
    
    
    
    
    
    3,629,352
  55




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##### Table of Contents



Remaining Maturity at December 31, 2008Without due
    
    
    Total0-1 Year
    
    
    1-5 Years
    
    
    5-10 Years
    
    
    Over 10 years
    
    
    date
    
    
    (2)Interest-bearing liabilities in foreign
currency:Cheking
    
    
    50,079
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    50,079Saving accounts
    
    
    416,608
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    416,608Time deposits
    
    
    1,955,062
    
    
    
    185
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,955,247Investment accounts
    
    
    8,794
    
    
    
    7,067
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15,861Corporate bonds
    
    
    14,344
    
    
    
    
    
    
    
    405,034
    
    
    
    
    
    
    
    
    
    
    
    419,378Subordinated corporate bonds
    
    
    1,824
    
    
    
    
    
    
    
    
    
    
    
    518,055
    
    
    
    
    
    
    
    519,879Liabilities with Central Bank
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Liabilities with local financial
    
    
    2,364
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,364Liabilities with banks and international
organizations
    
    
    59,737
    
    
    
    172,685
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    232,422Other liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Interest-Bearing Liabilities
    
    
    2,508,812
    
    
    
    179,937
    
    
    
    405,034
    
    
    
    518,055
    
    
    
    
    
    
    
    3,611,838Asset (Liability) Gap
    
    
    276,847
    
    
    
    521,176
    
    
    
    (274,831
    )
    
    
    (505,678
    )
    
    
    
    
    
    
    17,514Cumulative Asset/Liability Gap
    
    
    276,847
    
    
    
    798,023
    
    
    
    523,192
    
    
    
    17,514
    
    
    
    17,514Cumulative sensitivity gap as a percentage of
total interest-earning assets
    
    
    7.63
    %
    
    
    21.99
    %
    
    
    14.42
    %
    
    
    0.48
    %
    
    
    0.48
    %
 (1)
    
    Loan amounts are stated before deducting the allowance for loan losses. Non-accrual loans are
included with loans as interest-earning asset.(2)
    
    Includes instruments issued by the Central Bank. Item 4A. Unresolved Staff Comments
  
 Item 5. Operating and Financial Review and Prospects
   A. Operating results
 FINANCIAL PRESENTATION
  COMPARABILITY
   56




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##### Table of Contents



MACROECONOMIC CONTEXT
             OUR RESPONSE TO THE CONTEXT
   57




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##### Table of Contents



Commercial and balance sheet strategies
   Loyal client base
 Plan Sueldo
 Acquisitions
  December 31,
    
    
    
    
    
    
    
    
    
    
    December 31,
    
    
    December 31,September 30, 2001
    
    
    September 30, 2004
    
    
    2005
    
    
    June 30, 2006
    
    
    2006
    
    
    2007NuevoBancoNuevo
    
    
    
    
    
    
    
    
    
    BiselBanco
    
    
    Banco
    
    
    Banco
    
    
    Banco
    
    
    Banco
    
    
    Banco
    
    
    (stand-
    
    
    Banco
    
    
    BancoMacro (1) (2)
    
    

Bansud (1) (2)
    
    
    Macro (2)
    
    
    Suquía (2)
    
    

Macro (3)
    
    
    Macro (4)
    
    

alone) (2)
    
    

Macro (5)
    
    
    Macro(in million of Pesos)Assets
    
    
    1,424.0
    
    
    
    3,357.1
    
    
    
    5,312.6
    
    
    
    2,162.8
    
    
    
    9,487.8
    
    
    
    11,496
    
    
    
    1,934
    
    
    
    14,505.0
    
    
    
    19,781.2Private sector
loans (Gross)
    
    
    590.8
    
    
    
    899.8
    
    
    
    1,187.1
    
    
    
    711.0
    
    
    
    2,948.8
    
    
    
    4,141
    
    
    
    665
    
    
    
    5,524.5
    
    
    
    9,335.7Private sector
deposits
    
    
    790.6
    
    
    
    2,301.5
    
    
    
    2,236.0
    
    
    
    1,443.5
    
    
    
    5,737.4
    
    
    
    6,421
    
    
    
    1,326
    
    
    
    8,770.3
    
    
    
    11,803.7Branches
    
    
    73
    
    
    
    72
    
    
    
    154
    
    
    
    102
    
    
    
    254
    
    
    
    279
    
    
    
    158
    
    
    
    433
    
    
    
    427
 Source: Central Bank
 (1)
    
    In constant pesos as of February 28, 2003.(2)
    
    Last quarter prior to acquisition.(3)
    
    Including NuevoBanco
Suquía and Banco Empresario de Tucumán.(4)
    
    Including Banco
Empresario de Tucumán and Banco del Tucumán.(5)
    
    Including Banco
Empresario de Tucumán, Banco del Tucumán S.A. and Nuevo Banco Bisel.  58




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##### Table of Contents



Cost management
  Credit quality
  Year Ended December 31,2006
    
    
    2007
    
    
    2008Banco MacroAllowances/total loans
    
    
    3.1
    %
    
    
    2.2
    %
    
    
    3.7
    %Non-performing loans ratio
    
    
    2.0
    
    
    
    1.6
    
    
    
    2.6Allowances/lending (1)
    
    
    3.1
    %
    
    
    2.2
    %
    
    
    3.6
    %Non-performing lending ratio (2)
    
    
    2.0
    
    
    
    1.5
    
    
    
    2.6Financial SystemAllowances/lending (1)
    
    
    3.5
    %
    
    
    3.0
    %
    
    
    3.0
    %Non-performing lending ratio (2)
    
    
    3.3
    
    
    
    2.6
    
    
    
    2.6
 Source: Central Bank
 (1)
    
    Includes loans, other receivables from financial transactions, financial leases, memorandum
accountsother guarantees provided and unused portion of loans granted (included in Debtors Rating
Standards).(2)
    
    Non-performing lending includes all lending to borrowers classified as 3with problems/medium
risk, 4with high risk of insolvency/high risk, 5irrecoverable and 6irrecoverable by
technical decision under the Central Bank loan classification system. Implementation of improved credit policies
 Plan Sueldo
 Implementation of shares repurchase program
    59




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##### Table of Contents



Repurchase of own Notes
  Date
    
    8.50% Notes Due 2017
    
    
    10.750% Argentine Peso-Linked Notes Due 20121/23/2008
    
    
    9,500,0009/17/2008
    
    
    10,000,0009/26/2008
    
    
    850,00010/6/2008
    
    
    
    
    
    
    500,00010/9/2008
    
    
    
    
    
    
    1,000,00010/10/2008
    
    
    11,375,00010/15/2008
    
    
    1,000,00011/21/2008
    
    
    595,000
    
    
    
    1,520,00011/28/2008
    
    
    705,000
    
    
    
    4,640,00012/19/2008
    
    
    8,530,000
    
    
    
    800,0002/12/2009
    
    
    
    
    
    
    200,0004/7/2009
    
    
    
    
    
    
    4,500,0005/6/2009
    
    
    1,050,000
    
    
    
    20,000,0005/12/2009
    
    
    
    
    
    
    1,020,000Total repurchased
    
    
    43,605,000
    
    
    
    34,180,000Total cancelled
    
    
    42,555,000
    
    
    
    26,660,000
  PRINCIPAL TRENDS AFFECTING OUR BUSINESS
  Argentine economic performance
  
    
    Export-led growth in the economy. Argentinas economy has been led by export growth and
import substitution. This economic model is likely to favor provinces outside of the City
of Buenos Aires that are heavily focused on primary sectors of the economy, such as
agriculture, cattle ranching, mining, basic industries and tourism. Our extensive branch
network outside of the City of Buenos Aires (94 % of our, as compared to 81% for
Argentinas financial system) provides us with an opportunity to take advantage of growth
in these provinces to increase our credit portfolio faster than our competitors and to
increase our market share.
  60




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##### Table of Contents




    
    Gradual recovery of proportion of national income held by lower income segments. After
decades of widening, the income distribution gap between rich and poor in Argentina began
to narrow during 2003 and 2004, when the crisis resulted in a collapse of income of all
population segments. The real income of the poorer half of Argentinas population has
fallen over the last decades, from 32% of the income of the richer half in the late 1970s
to less than 20% of the income of the richer half in the aftermath of the crisis. Since
that time, the gap has narrowed and now the real income of the poorer half is higher than
20% of the income of the richer half. We believe that the long-term trend of increasing
income inequality has stopped and that the recent improvement in income distribution will
continue. Given our focus on the low- to medium-income individuals, we believe that we are
well positioned to benefit from an increase in credit demand by these population segments.
 
    
    Moderate inflation levels. The inflation rate for the twelve months ended December 31,
2008 was 7.2%. Inflation for 2007 was 8.5%, lower than the 9.8% registered in 2006 and is
a result of the governments policy of keeping the value of the peso to the dollar at a
level between Ps.3.5 and Ps.4 to US$1. We believe that to the extent that the market views
the exchange rate variations as predictable, the market will be in a better position to
forecast future inflation.
 Private sector lending
  
    
    Low cost of funds; high levels of liquidity. As a result of our low cost of funds and
our high level of liquidity, a key driver of our results is our ability to increase our
lending within the scope of our credit policy, as such lending is always at a positive
margin. Therefore, we have seen increases in our gross intermediation margin as our
private sector lending has increased.
 
    
    Growth prospects subject to development of inflation and long-term fixed rate lending.
We believe that the main obstacle preventing a faster recovery of Argentinas private
sector lending has been the uncertain outlook on long-term inflation, which has a
significant impact on both the supply of and demand for long-term loans as borrowers try
to hedge against inflation risk by borrowing at fixed rates while lenders hedge against
inflation risk by offering loans at floating rates. As a result, most of the increase in
the volume of private loans in the financial system until December 31, 2008 was
concentrated in short-term products. For example, the ratio of personal loans, overdrafts
and documents to GDP has increased from 3% in June 2003 to 6% as of December 31, 2008
while long-term loans represented by mortgages and secured loans have decreased from 3% to
2% of GDP during the same period (despite substantial GDP growth during the period).
 
    
    Reduced spreads. We expect the high intermediation spreads that prevailed after the
2001 economic crisis to continue to decline due to increasing competition in the banking
sector. The reduction of private sector credit volume has prompted Argentine banks to lend
at lower interest rates in an effort to capture a larger portion of the contracted loan
market, largely accounting for the current low spreads. Additionally, the international
context that is forcing the flight to quality, reduces the liquidity in countries such as
Argentina. This may push deposit rates upward in the medium term. If the spread reduction
continues without a significant increase in volumes, profitability will be negatively
affected. This trend will be partially offset for us by our stable depositor base, which
provides a low cost source of funding.
 Private sector loan portfolio credit quality
  Organic growth complemented by strategic acquisitions
    61




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##### Table of Contents



RESULTS OF OPERATIONS
        YEAR ENDED DECEMBER 31, 2008 COMPARED TO YEAR ENDED DECEMBER 31, 2007 AND YEAR ENDED DECEMBER 31,
2007 COMPARED TO YEAR ENDED DECEMBER 31, 2006
  Net Income
  Year ended December 31,2006 without
    
    
    
    
    
    
    2007 without2006 (1)
    
    
    2006 acq. (2)
    
    
    2007
    
    
    2006 acq. (2)
    
    
    2008(in thousands of pesos)Financial income
    
    
    1,155,207
    
    
    
    993,425
    
    
    
    1,890,422
    
    
    
    1,420,908
    
    
    
    3,029,860Financial expenses
    
    
    (394,897
    )
    
    
    (354,289
    )
    
    
    (805,265
    )
    
    
    (672,428
    )
    
    
    (1,342,062
    )Gross intermediation margin
    
    
    760,310
    
    
    
    639,136
    
    
    
    1,085,157
    
    
    
    748,480
    
    
    
    1,687,798Provision for loan losses
    
    
    (59,773
    )
    
    
    (48,872
    )
    
    
    (94,717
    )
    
    
    (71,425
    )
    
    
    (297,606
    )Service charge income
    
    
    452,232
    
    
    
    388,724
    
    
    
    662,326
    
    
    
    497,312
    
    
    
    891,700Service charge expenses
    
    
    (93,323
    )
    
    
    (84,174
    )
    
    
    (150,282
    )
    
    
    (123,012
    )
    
    
    (172,401
    )Administrative expenses
    
    
    (651,000
    )
    
    
    (552,376
    )
    
    
    (953,897
    )
    
    
    (690,454
    )
    
    
    (1,211,399
    )Net other income
    
    
    96,033
    
    
    
    155,809
    
    
    
    41,041
    
    
    
    216,188
    
    
    
    26,519Income before income tax
    
    
    504,479
    
    
    
    498,247
    
    
    
    589,628
    
    
    
    577,089
    
    
    
    924,611Income tax
    
    
    (76,961
    )
    
    
    (73,961
    )
    
    
    (92,345
    )
    
    
    (81,922
    )
    
    
    (261,207
    )Minority Interest
    
    
    (3,178
    )
    
    
    54
    
    
    
    (2,083
    )
    
    
    33
    
    
    
    (3,354
    )Net income
    
    
    424,340
    
    
    
    424,340
    
    
    
    495,200
    
    
    
    495,200
    
    
    
    660,050
 (1)
    
    Results for 2006 include the results of Banco del Tucumán from May 5, 2006 and Nuevo Banco
Bisel from August 11, 2006.(2)
    
    The results of Banco del Tucumán and Nuevo Banco Bisel are included in Net Other Income.  62




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##### Table of Contents



Financial Income
  Year ended December 31,2006 without
    
    
    
    
    
    
    2007 without2006 (1)
    
    
    2006 acq.
    
    
    2007 (1)
    
    
    2006 acq.
    
    
    2008(in thousands of pesos)Interest on cash
    
    
    11,682
    
    
    
    11,408
    
    
    
    19,917
    
    
    
    18,351
    
    
    
    7,010Interest on loans to the financial sector
    
    
    16,720
    
    
    
    13,786
    
    
    
    32,157
    
    
    
    30,229
    
    
    
    15,584Interest on overdrafts
    
    
    110,721
    
    
    
    96,186
    
    
    
    177,490
    
    
    
    146,661
    
    
    
    357,215Interest on documents (3)
    
    
    53,173
    
    
    
    42,823
    
    
    
    103,428
    
    
    
    59,695
    
    
    
    184,852Interest on mortgage loans
    
    
    48,506
    
    
    
    44,733
    
    
    
    68,065
    
    
    
    55,380
    
    
    
    97,057Interest on pledge loans (2)
    
    
    43,038
    
    
    
    39,427
    
    
    
    51,480
    
    
    
    38,213
    
    
    
    64,499Interest on credit card loans
    
    
    30,969
    
    
    
    27,992
    
    
    
    55,665
    
    
    
    44,371
    
    
    
    117,952Interest on other loans (4)
    
    
    272,935
    
    
    
    230,064
    
    
    
    578,737
    
    
    
    446,927
    
    
    
    1,032,837Interest on other receivables from financial
intermediation
    
    
    15,050
    
    
    
    13,876
    
    
    
    18,471
    
    
    
    15,176
    
    
    
    14,416Income from government and private securities, net
    
    
    324,178
    
    
    
    262,875
    
    
    
    488,757
    
    
    
    307,048
    
    
    
    641,299Income from guaranteed loans (6)
    
    
    29,898
    
    
    
    26,656
    
    
    
    35,043
    
    
    
    25,965
    
    
    
    37,043Net income from options
    
    
    
    
    
    
    
    
    
    
    1,604
    
    
    
    1,604
    
    
    
    261CER (Indexation by benchmark stabilization
coefficient) (5)
    
    
    84,951
    
    
    
    76,928
    
    
    
    78,065
    
    
    
    60,076
    
    
    
    70,477CVS (Indexation by salary variation coefficient)
    
    
    1,947
    
    
    
    1,944
    
    
    
    1,605
    
    
    
    1,603
    
    
    
    818Difference in quoted prices of gold and foreign
currency
    
    
    40,007
    
    
    
    37,946
    
    
    
    48,823
    
    
    
    41,150
    
    
    
    143,094Other (7)
    
    
    71,432
    
    
    
    66,781
    
    
    
    131,115
    
    
    
    128,459
    
    
    
    245,446Total financial income
    
    
    1,155,207
    
    
    
    993,425
    
    
    
    1,890,422
    
    
    
    1,420,908
    
    
    
    3,029,860
 (1)
    
    See note 4.2. to our audited consolidated financial statements for the year ended December 31,
2008.(2)
    
    Includes primarily secured car loans.(3)
    
    Includes factoring, check cashing advances and loans with promissory notes.(4)
    
    Includes interest on loans not classified under prior headings.(5)
    
    Includes CER accrued for all the assets subject to adjustment by CER.(6)
    
    Includes loans to the Argentine government that were issued in exchange for federal and
provincial government bonds.(7)
    
    Principally results from forward foreign currency transactions and result from lending
activity. 2008 and 2007
      December 31 2007
    
    
    December 31 2008vs.
    
    
    vs.December 31 2006
    
    
    December 31 2007Increase (Decrease)
    
    
    Increase (Decrease)Financial Income due to changes in the volume of interest-earning assets
    
    
    622,135
    
    
    
    575,552Financial Income due to changes in average nominal rates of interest-earning assets
    
    
    57,122
    
    
    
    373,687Net change
    
    
    679,257
    
    
    
    949,239
  63




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##### Table of Contents



2007 and 2006
    Financial expenses
  Year ended December 31,2006 without
    
    
    
    
    
    
    2007 without2006 (1)
    
    
    2006 acq.
    
    
    2007 (1)
    
    
    2006 acq.
    
    
    2008(in thousands of pesos)Interest on checking accounts
    
    
    9,475
    
    
    
    8,665
    
    
    
    19,968
    
    
    
    18,251
    
    
    
    17,708Interest on savings accounts
    
    
    6,736
    
    
    
    5,976
    
    
    
    11,372
    
    
    
    8,985
    
    
    
    14,534Interest on time deposits
    
    
    233,697
    
    
    
    209,629
    
    
    
    457,395
    
    
    
    382,788
    
    
    
    933,881Interest on interfinancing received
loans (received call)
    
    
    801
    
    
    
    794
    
    
    
    4,608
    
    
    
    4,572
    
    
    
    3,909Interest on other financing from the
financial institutions
    
    
    252
    
    
    
    210
    
    
    
    226
    
    
    
    130
    
    
    
    28Interest on other liabilities from
financial intermediation (2)
    
    
    14,421
    
    
    
    14,395
    
    
    
    70,706
    
    
    
    70,608
    
    
    
    91,083Interest on subordinated corporate bonds
    
    
    2,017
    
    
    
    2,017
    
    
    
    49,858
    
    
    
    49,858
    
    
    
    47,523Other interest
    
    
    12,410
    
    
    
    10,648
    
    
    
    9,768
    
    
    
    6,131
    
    
    
    8,762Net loss from options
    
    
    371
    
    
    
    371
    
    
    
    
    
    
    
    
    
    
    
    CER adjustment (3)
    
    
    55,732
    
    
    
    46,633
    
    
    
    43,717
    
    
    
    24,953
    
    
    
    32,946Contribution to Deposit Guarantee Fund
    
    
    12,753
    
    
    
    10,968
    
    
    
    20,182
    
    
    
    15,939
    
    
    
    25,945Other (4)
    
    
    46,232
    
    
    
    43,983
    
    
    
    117,465
    
    
    
    90,213
    
    
    
    165,743Total financial expenses
    
    
    394,897
    
    
    
    354,289
    
    
    
    805,265
    
    
    
    672,428
    
    
    
    1,342,062
 (1)
    
    See note 4.2. to our audited consolidated financial statements for the year ended
December 31, 2008.(2)
    
    Includes lines of credit from other banks, repurchase agreements, liquidity assistance from
the Central Bank .(3)
    
    Includes CER accrued for all the liabilities subject to adjustment by CER.(4)
    
    Includes interest on deposits in the form of government securities and CEDROs. 2008 and 2007
    64




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##### Table of Contents



December 31 2007
    
    
    December 31 2008vs.
    
    
    vs.December 31 2006
    
    
    December 31 2007Increase (Decrease)
    
    
    Increase (Decrease)Financial Expense due to changes in the volume of
interest-bearing liabilities
    
    
    291,394
    
    
    
    266,157Financial Expense due to
changes in average nominal
rates of interest-bearing
liabilities
    
    
    51,275
    
    
    
    218,692Net change
    
    
    342,669
    
    
    
    484,849
 2007 and 2006
     Provision for loan losses
 2008 and 2007
 2007 and 2006
 Service charge income
  Year ended December 31,2006 without
    
    
    
    
    
    
    2007 without2006 (1)
    
    
    2006 acq.
    
    
    2007 (1)
    
    
    2006 acq.
    
    
    2008(in thousands of pesos)Service charges on deposit accounts
    
    
    258,855
    
    
    
    224,911
    
    
    
    398,569
    
    
    
    297,457
    
    
    
    587,426Debit and credit card income
    
    
    65,410
    
    
    
    58,975
    
    
    
    95,644
    
    
    
    79,616
    
    
    
    153,210Other fees related to foreign trade
    
    
    11,607
    
    
    
    10,818
    
    
    
    15,947
    
    
    
    13,651
    
    
    
    19,261Credit-related fees
    
    
    35,964
    
    
    
    30,173
    
    
    
    53,995
    
    
    
    36,049
    
    
    
    63,669Capital markets and securities activities
    
    
    2,085
    
    
    
    2,041
    
    
    
    2,951
    
    
    
    2,672
    
    
    
    2,517Lease of safe-deposit boxes
    
    
    8,467
    
    
    
    7,420
    
    
    
    12,904
    
    
    
    9,434
    
    
    
    16,282Fees related to guarantees
    
    
    5,876
    
    
    
    5,837
    
    
    
    2,789
    
    
    
    2,718
    
    
    
    1,750Other (2)
    
    
    63,968
    
    
    
    48.549
    
    
    
    79,527
    
    
    
    55,715
    
    
    
    47,585Total service charge income
    
    
    452,232
    
    
    
    388,724
    
    
    
    662,326
    
    
    
    497,312
    
    
    
    891,700
 (1)
    
    See note 4.2 to our audited financial statements for the year ended December 31, 2008.(2)
    
    Includes insurance income.  65




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##### Table of Contents



2008 and 2007
 2007 and 2006
 Service charge expenses
   Administrative expenses
  Year ended December 31,2006 without
    
    
    
    
    
    
    2007 without2006 (1)
    
    
    2006 acq.
    
    
    2007 (1)
    
    
    2006 acq.
    
    
    2008(in thousands of pesos)Personnel expenses
    
    
    396,338
    
    
    
    327,729
    
    
    
    589,021
    
    
    
    401,756
    
    
    
    798,236Directors and statutory auditors fees
    
    
    14,362
    
    
    
    13,167
    
    
    
    37,695
    
    
    
    33,909
    
    
    
    26,941Other professional fees
    
    
    39,670
    
    
    
    37,215
    
    
    
    42,428
    
    
    
    36,331
    
    
    
    55,012Advertising and publicity
    
    
    31,866
    
    
    
    29,719
    
    
    
    50,343
    
    
    
    45,634
    
    
    
    53,178Taxes
    
    
    7,551
    
    
    
    6,802
    
    
    
    10,345
    
    
    
    7,156
    
    
    
    12,391Depreciation of equipment
    
    
    29,231
    
    
    
    23,735
    
    
    
    42,723
    
    
    
    32,074
    
    
    
    50,543Amortization of organization costs
    
    
    13,263
    
    
    
    12,290
    
    
    
    17,923
    
    
    
    15,553
    
    
    
    25,557Maintenance, conservation and repair
expenses
    
    
    25,209
    
    
    
    21,881
    
    
    
    36,930
    
    
    
    26,801
    
    
    
    48,251Security services
    
    
    25,003
    
    
    
    20,855
    
    
    
    35,487
    
    
    
    24,748
    
    
    
    42,241Electric power and communications
    
    
    22,912
    
    
    
    18,091
    
    
    
    32,206
    
    
    
    19,317
    
    
    
    37,240Lease payments
    
    
    14,123
    
    
    
    12,127
    
    
    
    18,686
    
    
    
    14,391
    
    
    
    21,769Insurance
    
    
    5,253
    
    
    
    4,663
    
    
    
    6,110
    
    
    
    4,857
    
    
    
    6,090Stationery and office supplies
    
    
    9,046
    
    
    
    7,900
    
    
    
    14,739
    
    
    
    10,477
    
    
    
    15,335Other
    
    
    17,173
    
    
    
    16,202
    
    
    
    19,261
    
    
    
    17,450
    
    
    
    18,615Total administrative expenses
    
    
    651,000
    
    
    
    552,376
    
    
    
    953,897
    
    
    
    690,454
    
    
    
    1,211,399
 (1)
    
    See note 4.2 to our audited consolidated financial statements for the year ended December 31,
2008. 2008 and 2007
 2007 and 2006
 Net other income
    66




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##### Table of Contents



Income tax
   B. Liquidity and Capital Resources
              67




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##### Table of Contents



Minimum capital requirements
  As of December 31,2006
    
    
    2007
    
    
    2008(in thousands of pesos, exceptratios and percentages)Calculation of excess capital:Allocated to assets at risk
    
    
    549,882
    
    
    
    749,855
    
    
    
    939,296Allocated to Bank premises and equipment, intangible assets and
equity investment assets
    
    
    81,647
    
    
    
    95,729
    
    
    
    87,114Market risk(1)
    
    
    60,547
    
    
    
    127,445
    
    
    
    49,899Interest rate risk
    
    
    16,371
    
    
    
    102,343
    
    
    
    204,510Government sector and securities in investment account
    
    
    19,746
    
    
    
    38,609
    
    
    
    60,780Incremental requirement
    
    
    13,328
    
    
    
    36,202
    
    
    
    Required minimum capital under Central Bank Rules
    
    
    741,521
    
    
    
    1,150,183
    
    
    
    1,341,598Basic net worth
    
    
    2,426,351
    
    
    
    2,697,416
    
    
    
    2,688,679Complementary net worth
    
    
    383,040
    
    
    
    461,405
    
    
    
    625,756Deductions
    
    
    (153,115
    )
    
    
    (189,145
    )
    
    
    (200,610
    )Total capital under Central Bank Rules
    
    
    2,656,276
    
    
    
    2,969,676
    
    
    
    3,113,825Excess capital
    
    
    1,914,755
    
    
    
    1,819,493
    
    
    
    1,772,227Selected capital and liquidity ratios:Regulatory capital/risk weighted assets
    
    
    31.31
    %
    
    
    26.81
    %
    
    
    22.95
    %Average shareholders equity as a percentage of average total assets
    
    
    16.24
    %
    
    
    13.87
    %
    
    
    12.69
    %Total liabilities as a multiple of total stockholders equity
    
    
    5.27
    x
    
    
    6.31
    x
    
    
    6.96
    xCash as a percentage of total deposits
    
    
    26.08
    %
    
    
    22.94
    %
    
    
    22.26
    %Liquid assets as a percentage of total deposits (2)
    
    
    61.92
    %
    
    
    52.01
    %
    
    
    48.80
    %Loans as a percentage of total assets
    
    
    45.00
    %
    
    
    50.60
    %
    
    
    50.30
    %
 (1)
    
    Average variance for December.(2)
    
    Liquid assets include cash, cash collateral, LEBACs, NOBACs, interbanking loans and overnight
loans to highly rated companies.  Funding
  As of December 31,2006 (1)
    
    
    2007 (1)
    
    
    2008(in thousands of pesos)DepositsFrom the non-financial government sector
    
    
    1,295,630
    
    
    
    1,774,121
    
    
    
    3,937,961From the financial sector
    
    
    5,078
    
    
    
    13,310
    
    
    
    22,438From the non-financial private sector and foreign residentsChecking accounts
    
    
    1,876,232
    
    
    
    2,599,682
    
    
    
    2,581,060Savings accounts
    
    
    2,097,362
    
    
    
    2,780,350
    
    
    
    2,716,913Time deposits
    
    
    4,380,981
    
    
    
    5,907,005
    
    
    
    6,031,882Investment accounts (2)
    
    
    18,836
    
    
    
    63,063
    
    
    
    155,936Other (3)
    
    
    360,195
    
    
    
    391,176
    
    
    
    321,020Accrued interest, adjustments and foreign exchange
differences payable
    
    
    36,703
    
    
    
    62,442
    
    
    
    61,147Borrowing from Central Bank and financial institutionsCentral Bank
    
    
    386,089
    
    
    
    347,896
    
    
    
    302,760Banks and international institutions
    
    
    182,405
    
    
    
    164,829
    
    
    
    232,422Financing received from Argentine financial institutions
    
    
    68,158
    
    
    
    160,296
    
    
    
    73,806Other
    
    
    250,096
    
    
    
    493,912
    
    
    
    627,140Minority interest in subsidiaries
    
    
    78,045
    
    
    
    12,640
    
    
    
    15,607Corporate Bonds
    
    
    
    
    
    
    799,537
    
    
    
    724,873Subordinated Corporate Bonds
    
    
    507,844
    
    
    
    490,695
    
    
    
    521,681Shareholders equity
    
    
    2,315,097
    
    
    
    2,707,706
    
    
    
    2,816,597Total funding
    
    
    13,858,751
    
    
    
    18,768,660
    
    
    
    21,143,243
 (1)
    
    See note 4.2. to our audited consolidated financial statements for the year ended December
31, 2008.(2)
    
    Time deposit payable at the option of the depositor.(3)
    
    Primarily includes CEDROs, expired time deposits, and judicial deposits.  68




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##### Table of Contents



Critical accounting policies
   Income tax
          69




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##### Table of Contents



Exposure to the Argentine Public Sector and Private Securities
 Guaranteed Loans
     Government and private securities
 Secured bonds
     Instruments issued by Central Bank of Argentina and other securities
      a)
    
    The decline is attributable solely to adverse interest rate movements, and has not connection
with a credit event;b)
    
    The principal and interest payments have been made as scheduled, and there is not evidence
that the debtor will not continue to do so;c)
    
    The Bank has the intention and the ability to hold the security at least until the fair value
of the security recovers to a level that exceeds the securitys amortized costs.
 Allowance for loan losses
   70




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##### Table of Contents



Credit card loans
  Impaired loans  Non Financial Private Sector and residents abroad
  Interest recognition  non-accrual loans
   Business combination
    71




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##### Table of Contents



Fair value of financial instruments
    a)
    
    Quoted prices for similar assets or liabilities in active markets;b)
    
    Quoted prices for identical or similar assets or liabilities in less-active markets;c)
    
    Pricing models whose inputs are observable for substantially the full term of the
asset or liability; and
 d)
    
    Pricing models whose inputs are derived principally from or corroborated by
observable market data through correlation or other means for substantially the full term
of the asset or liability.
   C. Research and Development, Patents and Licenses, Etc.
  D. Trend Information
   72




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##### Table of Contents




    
    The use of bank services by state and private employees and retirees through the opening
of savings accounts.
 
    
    Granting of personal loans to state and private employees and retirees.
 
    
    The delivery of limited-risk credit cards as a result of diversification and the
automatic debit of the minimum account payment.
 
    
    Marketing of other types of services, such as insurance, interbank transfers, service
payments, etc.
  
    
    Creating an excellent source of resources with very low volatility and costs.
 
    
    Expanding the portfolio related to loans distributed among a significant number of
people, the risk in this type of financing being relatively low.
 
    
    Applying the markets lowest rates in personal loans and credit cards, thus enabling the
systematic growth of loan stock.
 
    
    Fixing strategic agreements with companies to allow the bank to place commercial loans
in companies with profitable projects and growth prospects, and providing new individuals
accounts simultaneously to allow them to receive their salaries.
   E. Off-Balance Sheet Arrangements
   F. Contractual Obligations
  Payments due by periodLess than
    
    
    
    
    
    
    
    
    
    
    AfterTotal
    
    
    1 year
    
    
    1-3 years
    
    
    3-5 years
    
    
    5 years(in thousands of pesos)Contractual obligationsCentral Bank (1)
    
    
    302,760
    
    
    
    78,939
    
    
    
    148,857
    
    
    
    74,539
    
    
    
    425Banks and international institutions
    
    
    232,422
    
    
    
    59,737
    
    
    
    172,685
    
    
    
    
    
    
    
    Corporate Bonds
    
    
    724,873
    
    
    
    16,518
    
    
    
    
    
    
    
    303,321
    
    
    
    405,034Financing received from Argentine financial institutions
    
    
    73,806
    
    
    
    31,846
    
    
    
    7,649
    
    
    
    7,867
    
    
    
    26,444Operating leases
    
    
    49,199
    
    
    
    17,516
    
    
    
    25,388
    
    
    
    2,097
    
    
    
    4,198Other
    
    
    627,140
    
    
    
    545,183
    
    
    
    6,193
    
    
    
    2,751
    
    
    
    73,013Subordinated corporate bonds
    
    
    521,681
    
    
    
    2,740
    
    
    
    886
    
    
    
    
    
    
    
    518,055Total contractual obligations
    
    
    2,531,881
    
    
    
    752,479
    
    
    
    361,658
    
    
    
    390,575
    
    
    
    1,027,169Commercial commitmentsLines of credit
    
    
    13,502
    
    
    
    13,502
    
    
    
    
    
    
    
    
    
    
    
    Guarantees
    
    
    283,246
    
    
    
    118,529
    
    
    
    89,232
    
    
    
    48,184
    
    
    
    27,301Standby letters of credit
    
    
    76,583
    
    
    
    51,551
    
    
    
    25,032
    
    
    
    
    
    
    
    Total commercial commitments
    
    
    373,331
    
    
    
    183,582
    
    
    
    114,264
    
    
    
    48,184
    
    
    
    27,301
 (1)
    
    As mentioned in note 2, to our audited consolidated financial statements for the year ended
December 31, 2008., during January and February 2009, as set forth by Central Bank resolution No.
06/2009 the Bank and its subsidiary Nuevo Banco Bisel S.A. have decided to prepay to payable
amounts resulting from loans received to acquire Argentine government bonds intended for the
depositors of former Nuevo Banco Suquia S.A and Nuevo Banco Bisel S.A in the amount of 291,609
(see note 7.2.b to our audited consolidated financial statements for the year ended December 31,
2008).  73




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Item 6. Directors, Senior Management and Employees
 A. Directors and Senior Management
  DUTIES AND LIABILITIES OF DIRECTORS
   BOARD OF DIRECTORS
  Year ofYear First
    
    Expiration ofName
    
    Position
    
    Age
    
    Appointed
    
    TermJorge Horacio Brito
    
    Chairman
    
    56
    
    2002
    
    2008Delfín Jorge Ezequiel Carballo
    
    Vice Chairman
    
    56
    
    2002
    
    2008Jorge Pablo Brito
    
    Director
    
    29
    
    2002
    
    2008Juan Pablo Brito Devoto
    
    Director
    
    48
    
    2002
    
    2010Roberto Julio Eilbaum
    
    Director
    
    64
    
    2002
    
    2010Luis Carlos Cerolini
    
    Director
    
    54
    
    2002
    
    2010Carlos Enrique Videla
    
    Director
    
    63
    
    2002
    
    2009Alejandro Macfarlane
    
    Director
    
    43
    
    2005
    
    2009Guillermo Eduardo Stanley
    
    Director
    
    60
    
    2006
    
    2009Constanza Brito
    
    Director
    
    27
    
    2007
    
    2009Mario Eduardo Bartolomé
    
    Alternate director
    
    63
    
    2004
    
    2008Ernesto Eduardo Medina
    
    Alternate director
    
    41
    
    2002
    
    2008Marcos Brito
    
    Alternate director
    
    26
    
    2007
    
    2008Fernando Raúl García Pulles
    
    Alternate director
    
    53
    
    2007
    
    2008
  74




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##### Table of Contents



Year ofYear First
    
    Expiration ofName
    
    Position
    
    Age
    
    Appointed
    
    TermJorge Horacio Brito
    
    Chairman
    
    56
    
    2002
    
    2011Delfín Jorge Ezequiel Carballo
    
    Vice Chairman
    
    56
    
    2002
    
    2011Jorge Pablo Brito
    
    Director
    
    29
    
    2002
    
    2011Marcos Brito
    
    Director
    
    26
    
    2007
    
    2011Hugo Alvarez (1)
    
    Director
    
    59
    
    2009
    
    2011Juan Pablo Brito Devoto
    
    Director
    
    49
    
    2002
    
    2010Roberto Julio Eilbaum
    
    Director
    
    64
    
    2002
    
    2010Luis Carlos Cerolini
    
    Director
    
    55
    
    2002
    
    2010Carlos Enrique Videla
    
    Director
    
    64
    
    2002
    
    2009Alejandro Macfarlane
    
    Director
    
    43
    
    2005
    
    2009Guillermo Eduardo Stanley
    
    Director
    
    61
    
    2006
    
    2009Constanza Brito
    
    Director
    
    27
    
    2007
    
    2009Mario Eduardo Bartolomé
    
    Alternate director
    
    63
    
    2004
    
    2011Ernesto Eduardo Medina
    
    Alternate director
    
    42
    
    2002
    
    2011Delfin Federico Ezequiel Carballo (1)
    
    Alternate director
    
    24
    
    2009
    
    2011Fernando Raúl García Pulles
    
    Alternate director
    
    54
    
    2007
    
    2011
 (1)
    
    Central Bank authorization is still pending.  SENIOR MANAGEMENT
   Year FirstNames
    
    Position
    
    Age
    
    AppointedJorge Horacio Brito
    
    Chief Executive Officer
    
    56
    
    2002Delfín Jorge Ezequiel Carballo
    
    Chief Financial Officer
    
    56
    
    2002Juan Pablo Brito Devoto
    
    Chief Accounting Officer
    
    49
    
    2002Jorge Pablo Brito
    
    Coordinator of the Executive Committee
    
    29
    
    2006Guillermo Goldberg
    
    Deputy general manager
    
    51
    
    2005Ernesto Eduardo Medina
    
    Systems and Technology manager
    
    42
    
    2007Jorge Francisco Scarinci
    
    Financial and Investor relations manager
    
    38
    
    2006Ana María Magdalena Marcet
    
    Credit risk manager
    
    47
    
    2002Miguel Gurfinkiel
    
    Government portfolio manager
    
    58
    
    2006Horacio Sistac
    
    Corporate banking manager
    
    52
    
    2005Francisco Muro
    
    Retail banking manager
    
    35
    
    2008Brian Anthony
    
    Branch network manager
    
    35
    
    2005Eduardo Roque Covello
    
    Operations manager
    
    51
    
    2006Máximo Eduardo Lanusse
    
    Administration manager
    
    35
    
    2007Daniel Hugo Violatti
    
    Accountancy and Tax manager
    
    46
    
    2003Constanza Brito
    
    Human Resources manager
    
    27
    
    2005Carmen Esther Estévez
    
    Internal audit manager
    
    51
    
    2002Ernesto López
    
    Legal manager
    
    36
    
    2008Milagro Medrano
    
    Institutional relations manager
    
    32
    
    2002Gerardo Alvarez
    
    Security and Fraud control manager
    
    39
    
    2008
   75




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##### Table of Contents



Asociación de Bancos Argentinos ADEBA) Nuevo Banco Bisel S.A., Banco del
Tucumán S.A., Sud Inversiones y Análisis S.A. Macro Securities S.A. Sociedad de Bolsa Inversora Juramento S.A.
 Nuevo Banco Bisel S.A., Banco del Tucumán S.A., Sud Inversiones y Análisis S.A. Macro
Securities S.A. Sociedad de Bolsa.
 Macro Warrants S.A, Inversora Juramento S.A Nuevo
Banco Bisel S.A., Banco del Tucumán S.A., Sud Inversions y Análisis S.A. Macro Securities S.A.
Sociedad de Bolsa.
 Macro Bank, Nuevo Banco Bisel S.A., and Sud Inversiones y Análisis S.A. Banco del Tucumán S.A. Macro Securities S.A. Sociedad de Bolsa.
 Nuevo Banco BiselS.A. Banco del Tucumán S.A.
 Provincanje S.A. Nuevo Banco Bisel S.A. Banco del Tucumán S.A., Sud Inversiones y
Análisis S.A., Macro Securities S.A. Sociedad de Bolsa, Macro Warrants S.A. ACH S.A. Cámara
Compensadora Electrónica.
 Nuevo Banco Bisel S.A.
 Empresa Distribuidora y Comercializadora Norte or Edenor
S.A
 Havanna S.A.
  Banco del Tucumán S.A.
    Nuevo Banco Bisel
 Estudio García Pulles-Calatrava & Asociados Estudio OFarrell
  76




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##### Table of Contents



Banco del Tucumán
S.A.
  B. Compensation
     77




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##### Table of Contents



C. Board Practices
 Corporate Governance
 www.macro.com.ar
 Independence of the Members of the Board of Directors and the Supervisory Committee
      Supervisory Committee
 sociedad anónima
   Year of
    
    CurrentName
    
    Position
    
    Age
    
    Appointment
    
    Term EndsLadislao Szekely
    
    Syndic
    
    55
    
    2008
    
    April 2009Santiago Marcelo Maidana
    
    Syndic
    
    78
    
    2008
    
    April 2009Herman Fernando Aner
    
    Syndic
    
    54
    
    2008
    
    April 2009Alejandro Almarza
    
    Alternate syndic
    
    50
    
    2008
    
    April 2009Horacio Della Rocca
    
    Alternate syndic
    
    54
    
    2008
    
    April 2009Alejandro Carlos Piazza
    
    Alternate syndic
    
    53
    
    2008
    
    April 2009
  78




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##### Table of Contents



Year of
    
    CurrentName
    
    Position
    
    Age
    
    Appointment
    
    Term EndsAlejandro Almarza
    
    Syndic
    
    51
    
    2009
    
    April 2010Santiago Marcelo Maidana
    
    Syndic
    
    79
    
    2009
    
    April 2010Leonardo Pablo Cortigiani
    
    Syndic
    
    41
    
    2009
    
    April 2010Carlos Javier Piazza
    
    Alternate syndic
    
    51
    
    2009
    
    April 2010Horacio Della Rocca
    
    Alternate syndic
    
    55
    
    2009
    
    April 2010Alejandro Carlos Piazza
    
    Alternate syndic
    
    54
    
    2009
    
    April 2010
  Macro Fondos
S.A. Sociedad Gerente de Fondos Comunes de Inversión S.A. Macro Warrants S.A. Nuevo Banco Bisel S.A Banco del Tucumán S.A. Macro Securities S.A. Sociedad
de Bolsa Sud Inversiones y Análisis S.A
 Nuevo
Banco Bisel S.A. Macro Securities S.A. Sociedad de Bolsa Sud Inversiones y Análisis S.A.
   of Macro Fondos S.A. Sociedad Gerente de Fondos Comunes de
Inversión S.A. Nuevo Banco Bisel S.A. Macro Warrants S.A., Banco del
Tucumán S.A. Macro Securities S.A. Sociedad de Bolsa Sud Inversiones y Análisis S.A.
 of Macro Fondos S.A. Sociedad Gerente
de Fondos Comunes de Inversión S.A. Nuevo Banco Bisel S.A., Macro
Securities S.A. Sociedad de Bolsa Sud Inversiones y Análisis S.A.
 Audit Committee
     Year ofName
    
    Position
    
    Age
    
    Appointment
    
    StatusGuillermo Eduardo Stanley
    
    Chairman
    
    60
    
    2007
    
    IndependentCarlos Enrique Videla
    
    Vice Chairman
    
    63
    
    2007
    
    IndependentAlejandro Macfarlane
    
    Member
    
    43
    
    2007
    
    IndependentFernando Raúl García Pulles
    
    Alternate Member
    
    53
    
    2007
    
    Independent
  79




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##### Table of Contents



Committees Reporting to the Board of Directors and to the CEO and the CFO
  Internal audit committee.
  Name
    
    PositionJuan Pablo Brito Devoto
    
    DirectorJorge Pablo Brito
    
    DirectorCarlos Enrique Videla
    
    Director (Independent)Carmen Estévez
    
    Internal audit manager  coordinator
 Systems and technology.
  Name
    
    PositionJorge Pablo Brito
    
    DirectorJuan Pablo Brito Devoto
    
    DirectorGuillermo Goldberg
    
    Deputy general managerErnesto Eduardo Medina
    
    Systems and technology manager  coordinatorEduardo Roque Covello
    
    Operations managerBrian Anthony
    
    Branch network managerConstanza Brito
    
    Human Resources managerMilagro Medrano
    
    Institutional relations managerDaniel Hugo Violatti
    
    Accountancy and Tax managerClaudia Cueto
    
    System Development managerMiguel Ángel Fernández
    
    Technology and Support managerRicardo Ojeda
    
    Production managerGuillermo Powell
    
    IT Security managerLídia Levato
    
    Plan and Control manager
 Senior credit committee.
 Name
    
    PositionJorge Horacio Brito
    
    ChairmanDelfín Jorge Ezequiel Carballo
    
    Vice ChairmanJorge Pablo Brito
    
    DirectorAna M. Marcet
    
    Credit Risk manager  coordinator
 Executive committee
  Name
    
    PositionJorge Horacio Brito
    
    ChairmanDelfín Jorge Ezequiel Carballo
    
    Vice ChairmanJorge Pablo Brito
    
    Director  coordinator
  80




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##### Table of Contents



Committee on assets and liabilities.
  Name
    
    PositionDelfin Jorge Ezequiel Carballo
    
    Vice ChairmanJorge Pablo Brito
    
    DirectorRoberto Eilbaum
    
    DirectorGuillermo Goldberg
    
    Deputy general managerJorge Scarinci
    
    Financial and Investor relations managerBrian Anthony
    
    Branch network managerHoracio Sistac
    
    Corporate banking managerFrancisco Muro
    
    Retail banking manager
 Committee on operational risk
  Name
    
    PositionJorge Pablo Brito
    
    DirectorGuillermo Goldberg
    
    Deputy general managerErnesto Medina
    
    Systems and technology managerAlberto Figueroa
    
    Supervisory entities relation managerPablo Siwacki
    
    Responsible for operational risk sector  coordinator
 Anti-money laundering committee
  Name
    
    PositionJorge Pablo Brito
    
    DirectorJuan Pablo Brito Devoto
    
    DirectorLuis Cerolini
    
    DirectorGuillermo Goldberg
    
    Deputy general managerJorge Scarinci
    
    Financial and Investor relations managerAlfredo Cobos
    
    Responsible for Anti-money laundering sector  coordinator
  81




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##### Table of Contents



D. Employees
  As of December 31,Employees
    
    2006
    
    
    2007
    
    
    2008Headquarters
    
    
    2,553
    
    
    
    2,713
    
    
    
    2,805Branches
    
    
    5,032
    
    
    
    5,155
    
    
    
    5,168Total
    
    
    7,585
    
    
    
    7,868
    
    
    
    7,973
 E. Share Ownership
   Percentage ofNumber of
    
    
    Percentage of
    
    
    VotingShareholder Name
    
    shares owned
    
    
    capital stock(%)
    
    
    rights(%)Jorge Horacio Brito
    
    
    125,507,961
    
    
    
    18.35
    %
    
    
    20.12
    %Delfín Jorge Ezequiel Carballo
    
    
    113,258,507
    
    
    
    16.56
    %
    
    
    18.22
    %Juan Pablo Brito Devoto
    
    
    6,691,999
    
    
    
    0.98
    %
    
    
    1.07
    %Jorge Pablo Brito
    
    
    244,168
    
    
    
    0.04
    %
    
    
    0.03
    %Luis Carlos Cerolini
    
    
    185,400
    
    
    
    0.03
    %
    
    
    0.03
    %Carlos Enrique Videla
    
    
    172,838
    
    
    
    0.03
    %
    
    
    0.03
    %Alejandro Macfarlane
    
    
    154,832
    
    
    
    0.02
    %
    
    
    0.02
    %Marcos Brito
    
    
    60,000
    
    
    
    0.01
    %
    
    
    0.01
    %Total
    
    
    246,275,705
    
    
    
    36.01
    %
    
    
    39.53
    %
   Number of
    
    
    Percentage of
    
    
    Percentage ofShareholder Name
    
    shares owned
    
    
    capital stock(%)
    
    
    Voting rights(%)Jorge Horacio Brito
    
    
    124,257,417
    
    
    
    18.17
    %
    
    
    19.95
    %Delfín Jorge Ezequiel Carballo
    
    
    113,258,507
    
    
    
    16.56
    %
    
    
    18.23
    %Juan Pablo Brito Devoto
    
    
    6,691,999
    
    
    
    0.98
    %
    
    
    1.07
    %Jorge Pablo Brito
    
    
    327,909
    
    
    
    0.05
    %
    
    
    0.04
    %Carlos Enrique Videla
    
    
    199,921
    
    
    
    0.03
    %
    
    
    0.03
    %Luis Carlos Cerolini
    
    
    193,400
    
    
    
    0.03
    %
    
    
    0.03
    %Total
    
    
    244,929,153
    
    
    
    35.82
    %
    
    
    39.35
    %
  82




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##### Table of Contents



Item 7. Major Shareholders and Related Party Transactions
 A. Major Shareholders
   Number of
    
    
    Number of
    
    
    
    
    
    
    Percentage of
    
    
    Percentage ofClass A
    
    
    Class B shares
    
    
    
    
    
    
    capital stock
    
    
    Voting rightsShareholder Name
    
    shares owned
    
    
    owned
    
    
    Total
    
    
    (%)
    
    
    (%)ANSES
    
    
    
    
    
    
    182,053,609
    
    
    
    182,053,609
    
    
    
    26.62
    %(1)
    
    
    24.98
    %Jorge Horacio Brito
    
    
    5,292,143
    
    
    
    120,215,818
    
    
    
    125,507,961
    
    
    
    18.35
    %
    
    
    20.12
    %Delfín Jorge Ezequiel Carballo
    
    
    4,895,416
    
    
    
    108,363,091
    
    
    
    113,258,507
    
    
    
    16.56
    %
    
    
    18.22
    %Other Shareholders (3)
    
    
    1,048,111
    
    
    
    262,110,785
    
    
    
    263,158,896
    
    
    
    38.47
    %(2)
    
    
    36.68
    %Total
    
    
    11,235,670
    
    
    
    672,743,303
    
    
    
    683,978,973
    
    
    
    100.00
    %
    
    
    100.00
    %
 (1)
    
    Although ANSES holds capital stock for up to 26.62%, pursuant to section 8 of Law No. 26,425
and its cross-reference to section 76 of Law No. 24,241, such shareholders voting rights are
limited to 5%. In the shareholders meetings held on April 21, May 12 and 27, 2009, ANSES made
reserve of the right to vote without such limit.(2)
    
    The 15.69% of capital stock is held in the form of ADSs issued by The Bank of New York.(3)
    
    Includes 75,541,518 repurchased shares.   Number of
    
    
    Number of
    
    
    
    
    
    
    Percentage of
    
    
    Percentage ofClass A
    
    
    Class B shares
    
    
    
    
    
    
    capital stock
    
    
    Voting rightsShareholder Name
    
    shares owned
    
    
    owned
    
    
    Total
    
    
    (%)
    
    
    (%)ANSES
    
    
    
    
    
    
    182,053,609
    
    
    
    182,053,609
    
    
    
    26.62
    %(1)
    
    
    24.98
    %Jorge Horacio Brito
    
    
    5,292,143
    
    
    
    118,965,274
    
    
    
    124,257,417
    
    
    
    18.17
    %
    
    
    19.95
    %Delfín Jorge Ezequiel Carballo
    
    
    4,895,416
    
    
    
    108,363,091
    
    
    
    113,258,507
    
    
    
    16.56
    %
    
    
    18.23
    %Other Shareholders (3)
    
    
    1,048,111
    
    
    
    263,361,329
    
    
    
    264,409,440
    
    
    
    38.65
    %(2)
    
    
    36.84
    %Total
    
    
    11,235,670
    
    
    
    672,743,303
    
    
    
    683,978,973
    
    
    
    100.00
    %
    
    
    100.00
    %
 (1)
    
    Although ANSES holds capital stock for up to 26.62%, pursuant to section 8 of Law No. 26,425
and its cross-reference to section 76 of Law No. 24,241, such shareholders voting rights are
limited to 5%. In the shareholders meetings held on April 21, May 12 and 27, 2009, ANSES made
reserve of the right to vote without such limit.(2)
    
    The 13.97% of capital stock is held in the form of ADSs issued by The Bank of New York.(3)
    
    Includes 90,641,692 repurchased shares.  83




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##### Table of Contents



Outstanding CapitalDate
    
    Stock (Ps.)
    
    
    Event
    
    Controlling ShareholdersJune 30, 2002
    
    64,410,357
    
    
    Capital increase
    
    Banco Macro S.A. 59.58%January 31, 2003
    

    455,242,646
    
    
    Capitalization of
    
    Banco Macro S.A. 81.23%irrevocable capitalcontributionsDecember 31, 2003
    

    608,943,437
    
    
    Merger with Banco Macro S.A.
    
    Jorge H. Brito 30.93%Delfín Jorge Ezequiel Carballo 25.73%Fernando Andrés Sansuste 11.75%Juan Pablo Brito Devoto 2.12%March 23, 2006
    

    683,943,437
    
    
    Capital Increase
    
    Jorge H. Brito 18.9%Delfín Jorge Ezequiel Carballo 16.7%Fernando Andrés Sansuste 7.6%Juan Pablo Brito Devoto 1.3%May 12, 2006
    

    683,943,437
    
    
    Transference of shares
    
    Jorge H. Brito 21.64 %Delfín Jorge Ezequiel Carballo 19.56%Juan Pablo Brito Devoto 1.27%May 31, 2007
    

    683,943,437
    
    
    Transference of shares
    
    Jorge H. Brito 18.87% (1)Delfín Jorge Ezequiel Carballo 16.80% (1)Juan Pablo Brito Devoto 0.10% (1)February 29, 2008
    

    683,978,973
    
    
    Capital Increase (2)
    
    Jorge H. Brito 18.17%Delfín Jorge Ezequiel Carballo 16.37%Juan Pablo Brito Devoto 0.98%December 31, 2008
    

    608,437,455
    
    
    Share repurchases (3)
    
    Jorge H. Brito 18.35%Delfín Jorge Ezequiel Carballo 16.56%Juan Pablo Brito Devoto 0.98%
 (1)
    
    Monthly movements mainly from November 2006.(2)
    
    On June 4 and June 5, 2007, Shareholders Meetings for Banco Macro S.A. and Nuevo Banco Suquía
S.A., respectively, resolved to authorize the merger of the two entities and increase the capital
stock of Banco Macro S.A. from Ps.683,943,437 to Ps.683,978,973, issuing
35,536 Class B ordinary shares with a Ps. 1.00 par value each and the right to one vote per share,
to be granted to the minority shareholders of Nuevo Banco Suquía S.A. as a result of the merger.
Although this capital increase was authorized in 2007, the new shares were issued on February 12,
2008.(3)
    
    As of December 31, 2008, we had 608,437,455 outstanding shares of common stock, consisting of
11,235,670 Class A shares and 597,201,785 Class B shares. Additionally, during 2008 the Bank
repurchased 75,541,518 Class B shares, resulting in a total of 683,978,973 shares, all of them with
a par value of Ps.1.00 per share. For more detailed information regarding the Banks share
repurchases, please refer to Item 16E. B. Related Party Transactions
     C. Interest of experts and counsel
   84




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##### Table of Contents



Item 8. Financial Information
 A. Consolidated Statements and Other Financial Information
  Legal Proceedings
  Dividend Policy
 pari passu
  AggregateDividendPaymentBased on financial statements for year ended
    
    
    
    Dividends per Share
    
    
    (in millions ofDecember 31,
    
    Payment Dates
    
    (in pesos)
    
    
    pesos)2003
    
    July 2004
    
    
    0.10
    
    
    
    60.92004
    
    April 2005
    
    
    0.05
    
    
    
    30.42005
    
    May 2006
    
    
    0.10
    
    
    
    68.42006
    
    May 2007
    
    
    0.15
    
    
    
    102.62007
    
    May 2008
    
    
    0.25
    
    
    
    171.02008 (1)
    
    May 2009
    
    
    0.25
    
    
    
    149.9
 (1)
    
    Central Bank
authorization is still pending. Dividends may be paid for an amount
up to Ps.149.9 million. Central Bank and contractual limitations on distribution of dividends
    (i)
    
    we are subject to a liquidation procedure or the mandatory transfer of assets by the Central
Bank in accordance with section 34 or 35 bis of the Financial Institutions Law;(ii)
    
    we are receiving financial assistance from the Central Bank (except liquidity assistance
under the pesification rules pursuant to Decree No. 739/2003);(iii)
    
    we are not in compliance with or have failed to comply on a timely basis with our reporting
obligations to the Central Bank; or(iv)
    
    we are not in compliance with minimum capital requirements (both on an individual and
consolidated basis) or with minimum cash reserves (on average).
   Amounts available for distribution and distribution approval process
   85




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Legal reserve requirement
  B. Significant Changes
  
 Item 9. The Offer and Listing
 A. Offer and listing details
  Ps. per Class B ShareBanco Macro
    
    High
    
    
    Low2009:May
    
    
    6.55
    
    
    
    4.20April
    
    
    4.20
    
    
    
    3.74March
    
    
    4.00
    
    
    
    3.36February
    
    
    3.85
    
    
    
    3.56January
    
    
    4.19
    
    
    
    3.70December 2008
    
    
    4.05
    
    
    
    3.352008
    
    
    8.46
    
    
    
    2.122007
    
    
    12.30
    
    
    
    7.202006
    
    
    9.51
    
    
    
    5.322005
    
    
    5.45
    
    
    
    3.472004
    
    
    3.76
    
    
    
    2.1920084th quarter
    
    
    6.15
    
    
    
    2.123rd quarter
    
    
    6.60
    
    
    
    5.002nd quarter
    
    
    8.46
    
    
    
    5.371st quarter
    
    
    8.16
    
    
    
    6.702007:4th quarter
    
    
    10.15
    
    
    
    7.203rd quarter
    
    
    10.70
    
    
    
    7.292nd quarter
    
    
    11.75
    
    
    
    9.801st quarter
    
    
    12.30
    
    
    
    8.95
 Source: Buenos Aires Stock Exchange Bulletin.
  86




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##### Table of Contents



US$ per ADSBanco Macro (1)
    
    High
    
    
    Low2009:May
    
    
    17.27
    
    
    
    10.43April
    
    
    12.00
    
    
    
    9.63March
    
    
    10.45
    
    
    
    8.72February
    
    
    10.88
    
    
    
    9.24January
    
    
    12.83
    
    
    
    9.75December 2008
    
    
    11.95
    
    
    
    9.192008
    
    
    26.67
    
    
    
    4.922007
    
    
    39.11
    
    
    
    22.402006
    
    
    31.96
    
    
    
    18.352008:4th quarter
    
    
    19.11
    
    
    
    4.923rd quarter
    
    
    21.62
    
    
    
    15.442nd quarter
    
    
    26.67
    
    
    
    16.611st quarter
    
    
    25.99
    
    
    
    20.862007:4th quarter
    
    
    31.92
    
    
    
    22.753rd quarter
    
    
    34.82
    
    
    
    22.402nd quarter
    
    
    39.00
    
    
    
    31.981st quarter
    
    
    39.11
    
    
    
    29.30
 Source: Reuters
 (1)
    
    Banco Macro was first listed on NYSE in March 2006. B. Plan of Distribution
  C. Markets
   D. Selling Shareholders
  E. Dilution
  F. Expenses of the issue
   87




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Item 10. Additional Information
 A. Share Capital
  B. Memorandum and Articles of Association
 General
 sociedad anónima, Sociedades Anónimas.
    Corporate Purpose
  Shareholders liability
 "
 Redemption and rights of withdrawal
    88




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##### Table of Contents



Preemptive and accretion rights
     Voting rights
  Registration requirements of foreign companies that hold Class B shares directly
  Liquidation rights
  Ordinary and extraordinary meetings
  Notices of meetings
   89




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Quorum and voting requirements
     Election of directors
  Anti-takeover provisions
  Form and transfer
  C. Material Contracts
   90




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D. Exchange controls
 Exchange rates
   Exchange Rates (1)Average
    
    
    Period-High
    
    
    Low
    
    
    (2)
    
    
    end2003
    
    
    3.3625
    
    
    
    2.7485
    
    
    
    2.9493
    
    
    
    2.93302004
    
    
    3.0718
    
    
    
    2.8037
    
    
    
    2.9424
    
    
    
    2.97382005
    
    
    3.0523
    
    
    
    2.8592
    
    
    
    2.9230
    
    
    
    3.03152006
    
    
    3.1072
    
    
    
    3.0305
    
    
    
    3.0741
    
    
    
    3.06952007
    
    
    3.1797
    
    
    
    3.0553
    
    
    
    3.1156
    
    
    
    3.15102008
    
    
    3.4537
    
    
    
    3.0128
    
    
    
    3.1614
    
    
    
    3.4537December 2008
    
    
    3.4537
    
    
    
    3.3763
    
    
    
    3.4226
    
    
    
    3.4537January 2009
    
    
    3.4875
    
    
    
    3.4497
    
    
    
    3.4640
    
    
    
    3.4875February 2009
    
    
    3.5595
    
    
    
    3.4860
    
    
    
    3.5115
    
    
    
    3.5595March 2009
    
    
    3.7167
    
    
    
    3.5905
    
    
    
    3.6540
    
    
    
    3.7135April 2009
    
    
    3.7208
    
    
    
    3.6738
    
    
    
    3.6934
    
    
    
    3.7198May 2009
    
    
    3.7465
    
    
    
    3.6928
    
    
    
    3.7245
    
    
    
    3.7465
 (1)
    
    Until June 2002, asked closing quotations as quoted by Banco de la Nación Argentina. Since
July 2002, the reference exchange rate as published by the Central Bank.(2)
    
    Based on daily closing price. Exchange controls
         91




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E. Taxation
 Material U.S. Federal Income Tax Considerations
  
    
    dealers in securities or currencies;
 
    
    insurance companies;
 
    
    tax-exempt organizations;
 
    
    traders in securities that elect to mark to market;
 
    
    certain financial institutions;
 
    
    partnerships or other pass-through entities;
 
    
    holders whose functional currency for U.S. federal income tax purposes is not the U.S.
dollar;
 
    
    U.S. expatriates;
 
    
    holders that hold Class B shares or ADSs as part of a hedge, straddle, conversion
transaction, constructive sale transaction or other integrated transaction;
 
    
    holders that own, directly, indirectly, or constructively, 10% or more of the total
combined voting power of our shares;
 
    
    real estate investment trusts; or
 
    
    regulated investment companies.
     
    
    an individual who is a citizen or resident of the United States;
 
    
    a corporation, or any other entity taxable as a corporation, created or organized in or
under the laws of the United States, any state thereof or the District of Columbia;
 
    
    an estate the income of which is subject to U.S. federal income taxation regardless of
its source; or
 
    
    a trust if (i) a court within the United States is able to exercise primary supervision
over the administration of the trust and one or more U.S. persons have the authority to
control all substantial decisions of the trust or (ii) the trust has a valid election in
effect under applicable Treasury regulations to be treated as a U.S. person.
    92




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
    
    the Class B shares generally will be includible in the gross income of a U.S. holder as
ordinary income on the day on which the dividends are received by the U.S. holder; or
 
    
    the Class B shares represented by ADSs generally will be includible in the gross income
of a U.S. holder as ordinary income on the day on which the dividends are received by the
depositary;
        93




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94




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Material Argentine Tax Considerations
    
    
    Resident individuals. Pursuant to a reasonable construction of the AITL: (i) income
obtained from the sale, exchange or other disposition of our Class B shares or ADSs by
resident individuals who do not sell or dispose of Argentine shares on a regular basis
would not be subject to Argentine income tax; and (ii) although there still exists
uncertainty regarding this issue, income obtained from the sale, exchange or other
disposition of our Class B shares or ADSs by resident individuals who sell or dispose of
Argentine shares on a regular basis should be exempt from Argentine income tax.
 
    
    Foreign beneficiaries. Capital gains obtained by non-residents or foreign entities from
the sale, exchange or other disposition of our Class B shares or ADSs are exempt from
income tax. Pursuant to a reasonable construction of the AITL, and although the matter is
not completely free from doubt, such treatment should also apply to those foreign
beneficiaries that qualify as offshore entities.
 
    
    Local entities. Capital gains obtained by Argentine entities (in general, entities
organized or incorporated under Argentine law, certain traders and intermediaries, local
branches of non-Argentine entities, sole proprietorships and individuals carrying on
certain commercial activities in Argentina) derived from the sale, exchange or other
disposition of our Class B shares or ADSs are subject to income tax at the rate of 35%.
Losses arising from the sale of our Class B shares or ADSs can be offset against the same
type of income.
  95




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valor
patrimonial proporcional
      F. Dividends and Paying Agents
  G. Statement by Experts
  H. Documents on Display
    
    
    our annual reports; and
 
    
    summaries of all notices of general meetings of shareholders and other reports and
communications that are made generally available to our shareholders.
  I. Subsidiary Information
   96




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Item 11. Quantitative and Qualitative Disclosure About Market Risk
 Market Risk
       2008Minimum
    
    
    49.7Maximum
    
    
    124.7Average
    
    
    84.8December 2008
    
    
    49.9
  Interest Rate Risk
      2008Minimum
    
    
    105.7Maximum
    
    
    204.5Average
    
    
    165.8December 2008
    
    
    181.8
 Foreign Exchange Risk
  2008Minimum
    
    
    2.4Maximum
    
    
    17.9Average
    
    
    6.7December 2008
    
    
    17.9
  97




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Equity and Commodity Price Risk
  
 Item 12. Description of Securities Other Than Equity Securities
  
 PART II
 
 Item 13. Defaults, Dividend Arrearages and Delinquencies
  
 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
  
 Item 15. Controls and Procedures
 Disclosure Controls and Procedures
   Managements Annual Report on Internal Control over Financial Reporting
   a)
    
    Pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the Bank;
 b)
    
    Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that our receipts and expenditures are being made only in accordance with
authorizations of management and directors of the Bank; and
 c)
    
    Provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Banks assets that could have a material effect on
the financial statements.
    98




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Attestation Report of the Independent Registered Public Accounting Firm
  REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
              99




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Changes in Internal Control Over Financial Reporting
  
 Item 16A. Audit Committee Financial Expert
  
 Item 16B. Code of Ethics
  
 Item 16C. Principal Accountant Fees and Services
 Fees Paid to the Companys Principal Accountant
  For the year ended December 31,Thousands of Pesos
    
    2007
    
    
    2008Audit Fees
    
    
    7,074
    
    
    
    9,097Audit Related Fees
    
    
    1,733
    
    
    
    442All Other Fees
    
    
    127
    
    
    
    35Total
    
    
    8,934
    
    
    
    9,574
 Audit Fees
  Audit-Related Fees
  All Other Fees
  Audit Committees Pre-approval Policies and Procedures
   100




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##### Table of Contents



Item 16D. Exemptions from the Listing Standards for Audit Committees
  
 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
 Maximum number of shares/PesosTotal number of
    
    
    
    
    
    
    Total number of
    
    
    that may yet be purchased under theshares
    
    
    Average price
    
    
    shares purchased as
    
    
    programPeriod
    
    purchased
    
    
    paid per share
    
    
    part of the program
    
    
    in Shares
    
    
    in $Month #1
January 1- 31
    
    
    291,432
    
    
    
    6.871
    
    
    
    291,432
    
    
    
    29,708,568
    
    
    
    207,997,588Month #2
February 1- 29
    
    
    1,148,000
    
    
    
    6.939
    
    
    
    1,439,432
    
    
    
    28,560,568
    
    
    
    200,030,622Month #3
March 1- 31
    
    
    
    
    
    
    
    
    
    
    1,439,432
    
    
    
    28,560,568
    
    
    
    200,030,622Month #4
April 1- 30
    
    
    
    
    
    
    
    
    
    
    1,439,432
    
    
    
    28,560,568
    
    
    
    200,030,622Month #5
May 1- 31
    
    
    3,580,870
    
    
    
    6.655
    
    
    
    5,020,302
    
    
    
    24,979,698
    
    
    
    176,261,596Month #6
June 1- 30
    
    
    7,970,482
    
    
    
    6.108
    
    
    
    12,990,784
    
    
    
    17,009,216
    
    
    
    115,048,015Month #7
July 1- 30
    
    
    14,752,394
    
    
    
    5.550
    
    
    
    27,743,178
    
    
    
    22,256,822
    
    
    
    112,030,278Month #8
August 1- 31
    
    
    14,560,016
    
    
    
    5.830
    
    
    
    42,303,194
    
    
    
    7,696,806
    
    
    
    40,293,946Month #9
September 1- 30
    
    
    5,143,270
    
    
    
    5.741
    
    
    
    47,446,464
    
    
    
    5,082,578
    
    
    
    10,767,691Month #10
October 1- 31
    
    
    13,219,536
    
    
    
    3.839
    
    
    
    60,666,000
    
    
    
    41,334,000
    
    
    
    152,055,524Month #11
November 1- 30
    
    
    12,252,676
    
    
    
    3.136
    
    
    
    72,918,676
    
    
    
    29,081,324
    
    
    
    124,147,791Month #12
December 1- 31
    
    
    2,622,842
    
    
    
    3.842
    
    
    
    75,541,518
    
    
    
    26,458,482
    
    
    
    112,213,1592009Month #1
January 1- 31
    
    
    4,158,482
    
    
    
    3.853
    
    
    
    79,700,000
    
    
    
    22,300,000
    
    
    
    97,531,279Month #2
February 1- 28
    
    
    6,520,000
    
    
    
    3.706
    
    
    
    86,220,000
    
    
    
    15,780,000
    
    
    
    67,587,946Month #3
March 1- 31
    
    
    3,352,873
    
    
    
    3.631
    
    
    
    89,572,873
    
    
    
    12,427,127
    
    
    
    61,462,567Month #4
April 1- 29
    
    
    1,068,819
    
    
    
    3.841
    
    
    
    90,641,692
    
    
    
    11,358,308
    
    
    
    57,564,636TOTAL
    
    
    90,641,692
    
    
    
    4.826
    
    
    
    90,641,692
    
    
    
    11,358,308
    
    
    
    57,564,636
 Repurchase original program and modifications
 1.
    
    On January 8, 2008 the Board of Directors of the Bank decided to establish the
following terms and conditions for the acquisition of its own shares issued by the Bank
under the provisions of Section 68 of Law 17,811 (added by Decree number 677/2001) and the
Rules of the CNV: (a) maximum amount of the investment: Up to Ps. 210,000,000; (b) maximum
number of shares to be acquired: Up to 30,000,000 common, book entry, Class B shares with a
par value of Ps$. 1 (one Peso) each and entitled to 1 (one) vote per share, (the Shares),
in the form of shares or American Depositary Shares or ADS representing 10 shares each,
which amount does not exceed the limitation of the 10% of the capital of the Bank, as
established by the applicable Argentine laws and regulations; (c) payable price: Between
Ps. 6.50 per share and up to Ps. 7.00 per share, and (d) term for the acquisition: 120
calendar days from the date of publication of the relevant information in the Bulletin of
the Buenos Aires Stock Exchange, subject to any renewal or extension to be duly informed to
the public in such Bulletin.
 2.
    
    On May 8, 2008 the Board of Directors of the Bank decided to extend the term for the
acquisition of certain shares issued by the Bank for 30 additional calendar days.
 3.
    
    On May 14, 2008 the Board of Directors of the Bank decided to amend the price range of
certain shares issued by the Bank, fixing such range between Ps. 6.00 per share and up to
Ps$. 7.00 per share.4.
    
    On June 6, 2008 the Board decided to extend the term until July 6, 2008.
  101




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5.
    
    Since June 25, 2008 the abovementioned price ranges was fixed between Ps. 5.00 per
share and up to Ps$. 7.00 per share.6.
    
    On July 4, 2008 the Board decided to extend the term until August 6, 2008.
 7.
    
    On July 15, 2008 the Board of Directors of the Bank decided to extend the maximum
amount up to Ps. 290,000,000 and the maximum number of shares up to 50,000,000, to amend
the price range of certain shares issued by the Bank, fixing such range between Ps. 4.00
per share and up to Ps$. 7.00 per share and to extend the term until September 5, 2008.
 8.
    
    On September 4, 2008 the Board of Directors of the Bank decided to extend the maximum
number of shares up to 52,529,042 and to amend the price range of certain shares issued by
the Bank, fixing such range between Ps. 4.00 per share and up to Ps$. 6.00 per share and to
extend the term until October 5, 2008.
 9.
    
    On October 1, 2008 the Board of Directors of the Bank decided to extend the maximum
amount up to Ps. 360,000,000 and the maximum number of shares up to 60,000,000 and to
extend the term until November 4, 2008.
 10.
    
    On October 20, 2008 the Board of Directors of the Bank decided to amend the price range
of certain shares issued by the Bank, fixing such range between Ps. 3.00 per share and up
to Ps$. 6.00 per share.
 11.
    
    On October 22, 2008 the Board of Directors of the Bank decided to extend the maximum
amount up to Ps. 390,000,000 and the maximum number of shares up to 68,000,000 and to amend
the price range of certain shares issued by the Bank, fixing such range between Ps. 1.00
per share and up to Ps$. 6.00 per share.
 12.
    
    On October 29, 2008 the Board of Directors of the Bank decided to extend the maximum
amount up to Ps. 495,000,000 and the maximum number of shares up to 102,000,000, to amend
the price range of certain shares issued by the Bank, fixing such range between Ps. 0.01
per share and up to Ps$. 4.00 per share and to extend the term until December 19, 2008.13.
    
    On December 18, 2008 the Board decided to extend the term until December 31, 2008.14.
    
    On December 30, 2008 the Board decided to extend the term until February 27, 2009.15.
    
    On February 26, 2009 the Board decided to extend the term until April 15, 2009.
 16.
    
    On April 15, 2009 the Board decided to extend the term until April 30, 2009.
  Purchases of Corporate Bonds by the Issuer and Affiliated Purchasers
 Period
    
    Series 2 v/n US$
    
    
    Series 3 v/n US$2008January 1- 31
    
    
    9,500,000
    
    
    
    February 1- 29
    
    
    
    
    
    
    March 1- 31
    
    
    
    
    
    
    April 1- 30
    
    
    
    
    
    
    May 1- 31
    
    
    
    
    
    
    June 1- 30
    
    
    
    
    
    
    July 1- 30
    
    
    
    
    
    
    August 1- 31
    
    
    
    
    
    
    September 1- 30
    
    
    10,850,000October 1- 31
    
    
    12,375,000
    
    
    
    1,500,000November 1- 30
    
    
    1,300,000
    
    
    
    6,160,000December 1- 31
    
    
    8,530,000
    
    
    
    800,000Total 2008
    
    
    42,555,000
    
    
    
    8,460,0002009January 1- 31
    
    
    
    
    
    
    February 1- 29
    
    
    
    
    
    
    200,000March 1- 31
    
    
    
    
    
    
    April 1- 30
    
    
    
    
    
    
    4,500,000May 1- 31
    
    
    1,050,000
    
    
    
    21,020,000Total 2009
    
    
    1,050,000
    
    
    
    25,720,000Total Repurchased
    
    
    43,605,000
    
    
    
    34,180,000
  102




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Item 16G. Comparison of New York stock exchange corporate governance standards and Argentine
corporate governance practices.
       NYSE Corporate Governance Standards - Section 303.A
    
    Banco Macro Corporate Practices303A.01-Independent Directors-Listed companies
must have a majority of independent directors on
its board of directors.
    
    Neither Argentine law nor our by-laws require us to have a
majority of independent directors.303A.02-Independence Tests-No director qualifies
as independent unless the board of directors
affirmatively determines that the director has no
material relationship with the listed company
(whether directly or as a partner, shareholder, or
officer of an organization that has a relationship
with the company), and emphasizes that the concern
is independence from management. The board is
also required, on a case by case basis, to express
an opinion with regard to the independence or lack
of independence, of each individual director.
    
    Pursuant to General Resolution No. 368/01 of the CNV, as
amended (T.O. 2001), a director is not independent if such
director is:(a)  a member of management or an employee of shareholders
who hold material holdings in the listed company or of
other entities in which these shareholders have material
holdings or over which these shareholders exercise a
material influence;(b)  is currently an employee or has, in the last three
years, been an employee of the listed company;(c)  a person who has a professional relationship or is part
of a company or professional association that maintains
professional relations with, or that receives remunerations
or fees (other than directors fees) from, the listed
company or from shareholders that have material holdings in
the listed company, or with a company in which such
shareholders have material holdings or exercise a material
influence;(d)  a person who has material holdings in the listed
company or in an entity that has material holdings in, or
exercises a material influence over, the listed company;
  103




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NYSE Corporate Governance Standards - Section 303.A
    
    Banco Macro Corporate Practices(e)  a person who provides goods or services to the listed
company or to shareholders that have material holdings in
or exercise a material influence over the listed company
and receives compensation for such services that is
substantially higher than that received as director of the
listed company; or(f)  the member is married or is a family member to an
individual who would not qualify as independent.Material holdings are shareholdings, either directly or
indirectly, that represent at least 35% of the capital
stock of the relevant entity, or a smaller percentage when
the person has the right to elect one or more directors per
class of shares or by having entered into agreements with
other shareholders relating to the governance and the
management of the relevant entity or of its controlling
shareholders.303A.03-Executive Sessions-Non-management
directors of each listed company must meet at
regularly scheduled executive sessions without
management.
    
    Neither Argentine law nor our by-laws require the holding
of such meetings and we do not hold non-management
directors meetings.
Our by-laws provide, however, that the board shall meet as
often as required by the interests of the Bank and at least
once a month.303A.04-Nominating/Corporate Governance Committee-
Listed companies must have a nominating/corporate
governance committee composed entirely of
independent directors, with a written charter that
covers certain minimum specified duties.
    
    Neither Argentine law nor our by-laws require the
establishment of a nominating/corporate governance
committee. We do not have a nominating/corporate
governance committee.
Directors are nominated and appointed by the shareholders.303A.05-Compensation Committee-Listed companies
must have a compensation committee composed
entirely of independent directors, with a written
charter that covers certain minimum specified
duties.
    
    Neither Argentine law nor our by-laws require the
establishment of a compensation committee. We do not have
a compensation committee.
The compensation of our directors is determined at the
annual ordinary shareholders meeting. Additionally, the
audit committee must issue an opinion regarding the
reasonableness and adequacy of such compensation.303A.06/07-Audit Committee/Requirements-Listed
companies must have an audit committee that
satisfies the requirements of Rule 10A-3 under the
Exchange Act.(a)  The audit committee must
have a minimum of
three members. All of its members shall be
financially literate or must acquire such
financial knowledge within a reasonable period and
at least one of its members shall have experience
in accounting or financial administration. In
addition to any requirement of Rule 10A-3(b)(1),
all audit committee members must satisfy the
requirements for independence set out in Section
303A.02. (b)  If a member of the audit committee is
simultaneously a member of the audit committee of
more than three public companies, and the listed
company does not limit the number of audit
committees on which its members may serve, then,
in each case the board of directors shall
determine whether the simultaneous service would
prevent such members from effectively serving on
the listed companys audit committee, and shall
disclose in the annual proxy statement of the
company or in the companys annual report on Form
10-K, which is filed with the SEC.(c)  The audit committee must have a written
charter that establishes the duties and
responsibilities of its members, including, at a
minimum, some of the duties and responsibilities
required by Rule 10A-3 of the Exchange Act and the
following responsibilities set forth in NYSE
Sections 303A.07(c)(iii)(A)-H) of
the NYSE Manual.

    
    (a)  Argentine law requires that the audit committee be
composed of three or more members from the Board of
Directors (with a majority of independent directors), all
of whom must be well-versed in business, financial or
accounting matters.
In addition, we are not required to
satisfy the audit committee requirements of Rule 10A-3.
All of the members of our Audit Committee, as appointed on
April 24, 2009, satisfy the independence requirements of
Rule 10A-3.(b)  A comparable provision, relating to an audit committee
members simultaneous membership on the audit committee of
other public companies, does not exist under Argentine law
or CNV standards.(c) The responsibilities of an audit committee, as provided
in Decree No. 677/2001 and the CNV standards, are
essentially the same as those provided for under Rule 10A-3
of the Exchange Act, including, but not limited to, the
following:A.  discussing the adequacy of its charter and reporting any
proposed changes to the Board of Directors;B.  overseeing the performance of internal control systems,
the administrative-accounting system and of all financial
information or other facts which could be submitted to the
controlling authorities in compliance with the applicable
reporting regime;
  104




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NYSE Corporate Governance Standards - Section 303.A
    
    Banco Macro Corporate PracticesA.  at least annually, obtain and
review a report by the independent auditor
describing: the firms internal
quality-control procedures; any material
issues raised by the most recent internal
quality-control review, or peer review, of
the firm, or by any inquiry or investigation
by governmental or professional authorities,
within the preceding five years, respecting
one or more independent audits carried out
by the firm, and any steps taken to deal
with any such issues; and (to assess the
auditors independence) all relationships
between the independent auditor and the
listed company;B.  meet to review and discuss
the listed
companys annual audited consolidated
financial statements and quarterly financial
statements with management and the
independent auditor, including reviewing the
companys specific disclosures under
Managements Discussion and Analysis of
Financial Condition and Results of
Operations;C.  discuss the listed
companys earnings
press releases, as well as financial
information and earnings guidance provided
to analysts and rating
agencies;D.  discuss policies
with respect to risk
assessment and risk
management;E.  meet separately,
periodically, with
management, with internal auditors (or other
personnel responsible for the internal audit
function) and with independent
auditors;F.  review with the
independent auditor any
audit problems or difficulties and
managements response;G.  set clear hiring
policies for employees
or former employees of the independent
auditors; andH. report regularly to
the board of
directors.(d) 303A.07(d) provides that
each company must
have an internal audit function to provide
management and the audit committee with ongoing
assessments of the companys risk management
processes.

    
    C.  issuing an opinion about the Board of Directors
proposal for the appointment of the external auditors to be
retained by the Bank, and ensuring that auditors are
objective and independent;D. reviewing external and internal auditors plans,
evaluating their performance,
and issuing an opinion to
that end;E.  analyzing the different services provided by the external auditors;F.  reporting on the fees invoiced by external auditors for
other related services that secure third-party reliability;G.  supervising the enforcement of the Banks risk
management information policies;H.  providing the market with full disclosure with respect
to transactions that give rise to conflict of interests
with the Banks members or controlling shareholders;I.  issuing an opinion on the reasonableness of any proposal
regarding Directors, management fees and stock option plans
proposed by the Board of Directors;J.  issuing an opinion on the compliance with applicable
legal requirements and on the reasonableness of the terms
of any issuance of stock or convertible securities that
exclude or limit shareholders preferential subscription rights;K.  assessing compliance with relevant rules of conduct;L.  issuing a related-party transaction opinion as provided
by applicable regulations;M.  preparing an performance plan annually for each fiscal
year which is presented to the Banks Board of Directors
and the Supervisory Committee; andN.  complying with all other obligations imposed by
applicable laws and regulations.303A.08-Shareholder Approval of Equity
Compensation Plans-Shareholders must be given the
opportunity to vote on equity compensation plans
and material revisions thereto, except for
employment inducement awards, certain grants,
plans and amendments in the context of mergers and
acquisitions, and certain specific types of plans.
    
    We do not currently offer equity-based compensation to our
directors, executive officers or employees, and have no
policy on this matter.303A.09-Corporate Governance Guidelines-Listed
companies must adopt and disclose corporate
governance guidelines.
    
    Neither Argentine law nor our by-laws require the adoption
or disclosure of corporate governance guidelines. The CNV,
through General Resolution 516/07, issued a recommended
Code of Corporate Governance for listed companies, which
has recently been adopted by the Bank.303A.10-Code of Business Conduct and Ethics-
Listed companies must adopt and disclose a code of
business conduct and ethics for directors,
officers and employees, and promptly disclose any
waivers of the code for directors or executive
officers.
    
    Neither Argentine law nor our by-laws require the adoption
or disclosure of a code of business conduct. We, however,
have adopted a code of business conduct that applies to all
our employees. In addition, we have adopted a specific
Code of Ethics for our Directors and Senior Financial
Officers.
  105




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NYSE Corporate Governance Standards - Section 303.A
    
    Banco Macro Corporate Practices303A.12 Certification Requirements-
(a)  Each listed company
CEO must certify to the
NYSE each year that he or she is not aware of any
violation by the company of NYSE corporate
governance listing standards, qualifying the
certification to the extent necessary.
    
    Comparable provisions do not exist under Argentine law and
CNV standards. Nevertheless, the Bank has complied with
the certification requirements under Section 303A.12 of the
NYSE rules.(b)  Each listed company CEO must
promptly notify
the NYSE in writing after any executive officer of
the listed company becomes aware of any material
non-compliance with any applicable provisions of
this Section 303A.(c)  Each listed company must submit an
executed
Written Affirmation annually to the NYSE. In
addition, each listed company must submit an
interim Written Affirmation each time a change
occurs to the board or any of the committees
subject to Section 303A.
 
 PART III
 
 Item 17. Financial Statements
  
 Item 18. Financial Statements
  
 Item 19. Exhibits
 EXHIBIT INDEX
 Exhibit Number
    
    Description1.1
    *
    
    Amended and Restated Bylaws of Banco Macro S.A., as amended on April 21, 2009.2.1
    
    
    Deposit Agreement among the registrant, The Bank of New York, as depositary, and the holders from
time to time of American depositary shares issued thereunder, including the form of American
depositary receipts, incorporated by reference to the Registration Statement on Form F-1, as
amended, filed by Banco Macro S.A. on March 20, 2006 (File No. 333-130901).8
    
    
    See Note 4.1 to our financial statements for information regarding our subsidiaries.12.1
    *
    
    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.12.2
    *
    
    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.13.1
    *
    
    Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.13.2
    *
    
    Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 *
    
    Filed herein.  106




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##### Table of Contents



SIGNATURE
  BANCO MACRO S.A.By:
    
    /s/ Jorge Horacio BritoName:
    Jorge Horacio BritoTitle:
    Chief Executive Officer   107




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CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE THREE YEARS ENDED DECEMBER 31, 2008,
TOGETHER WITH THE REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
  F - 1




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 BANCO MACRO S.A.   City of Buenos Aires
      
 
 
  F - 2




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
     
 
   F - 3




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2008 AND 2007
 2008
    
    
    2007 (1)ASSETSCASHCash on hand
    
    
    1,008,136
    
    
    
    790,869Due from banks and correspondentsCentral Bank of Argentina
    
    
    2,059,057
    
    
    
    2,022,463Local Others
    
    
    9,225
    
    
    
    4,262Foreign
    
    
    447,263
    
    
    
    299,647Other
    
    
    216
    
    
    
    1853,523,897
    
    
    
    3,117,426GOVERNMENT AND PRIVATE SECURITIESHoldings in investment accounts
    
    
    448,305
    
    
    
    Holdings for trading or financial intermediation
    
    
    344,467
    
    
    
    358,399Unlisted government securities
    
    
    69,958
    
    
    
    20,151Instruments issued by the Central Bank of Argentina
    
    
    3,838,911
    
    
    
    3,478,246Investments in listed private securities
    
    
    77,685
    
    
    
    93,956Less: Allowances
    
    
    (27
    )
    
    
    (27
    )4,779,299
    
    
    
    3,950,725LOANSTo the non-financial government sector
    
    
    744,507
    
    
    
    732,481To the financial sectorInterfinancing  (granted call)
    
    
    42,030
    
    
    
    65,789Other financing to Argentine financial institutions
    
    
    37,836
    
    
    
    94,496Accrued interest, adjustments, foreign exchange and
quoted price differences receivables
    
    
    557
    
    
    
    1,417To the non-financial private sector and foreign residentsOverdrafts
    
    
    1,556,433
    
    
    
    1,375,075Documents
    
    
    1,348,585
    
    
    
    1,213,669Mortgage loans
    
    
    738,592
    
    
    
    619,781Pledged loans
    
    
    339,895
    
    
    
    347,989Personal loans
    
    
    3,806,442
    
    
    
    3,207,547Credit cards
    
    
    869,101
    
    
    
    722,032Other
    
    
    2,071,927
    
    
    
    1,718,978Accrued interest, adjustments, foreign exchange and
quoted price differences receivables
    
    
    195,026
    
    
    
    153,902Less: Unposted payments
    
    
    (29
    )
    
    
    (69
    )Less: Unearned discount
    
    
    (32,596
    )
    
    
    (23,248
    )Less: Allowances
    
    
    (438,348
    )
    
    
    (220,422
    )11,279,958
    
    
    
    10,009,417
 (1)
    
    See note 4.2. to the accompanying financial statements.  F - 4




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2008 AND 2007
 2008
    
    
    2007 (1)OTHER RECEIVABLES FROM FINANCIAL INTERMEDIATIONCentral Bank of Argentina
    
    
    412,305
    
    
    
    191,475Amounts receivable from spot and forward sales pending settlement
    
    
    494,737
    
    
    
    428,581Securities and foreign currency receivable from spot and forward
purchases pending settlement
    
    
    54,282
    
    
    
    149,275Unlisted corporate bonds
    
    
    53,389
    
    
    
    44,257Receivables from forward transactions without delivery of underlying asset
    
    
    109
    
    
    
    Other receivables not covered by debtors classification standards
    
    
    597,319
    
    
    
    549,677Other receivables covered by debtors classification standards
    
    
    70,512
    
    
    
    69,969Less: Allowances
    
    
    (228,588
    )
    
    
    (206,939
    )1,454,065
    
    
    
    1,226,295ASSETS SUBJECT TO FINANCIAL LEASESAssets subject to financial leases
    
    
    360,781
    
    
    
    372,866Less: Allowances
    
    
    (5,391
    )
    
    
    (4,898
    )355,390
    
    
    
    367,968INVESTMENTS IN OTHER COMPANIESIn financial institutions
    
    
    483
    
    
    
    439Other
    
    
    10,286
    
    
    
    10,669Less: Allowances
    
    
    (247
    )
    
    
    (697
    )10,522
    
    
    
    10,411OTHER RECEIVABLESReceivables from sale of assets
    
    
    43,358
    
    
    
    26,074Minimum presumed income tax  Tax credit
    
    
    25,767
    
    
    
    45,293Other
    
    
    196,000
    
    
    
    209,345Accrued interest and adjustments on receivables from sale of assets
    
    
    2,502
    
    
    
    544Other accrued interest and adjustments receivable
    
    
    
    
    
    
    58Less: Allowances
    
    
    (15,838
    )
    
    
    (27,034
    )251,789
    
    
    
    254,280BANK PREMISES AND EQUIPMENT, NET
    
    
    430,842
    
    
    
    373,111OTHER ASSETS
    
    
    137,357
    
    
    
    206,580INTANGIBLE ASSETSGoodwill
    
    
    63,477
    
    
    
    71,916Organization and development costs, including amparos
    
    
    135,069
    
    
    
    128,047198,546
    
    
    
    199,963ITEMS PENDING ALLOCATION
    
    
    3,332
    
    
    
    2,056TOTAL ASSETS
    
    
    22,424,997
    
    
    
    19,718,232
 (1)
    
    See note 4.2. to the accompanying financial statements.  F - 5




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2008 AND 2007
 2008
    
    
    2007 (1)LIABILITIESDEPOSITSFrom the non-financial government sector
    
    
    3,937,961
    
    
    
    1,774,121From the financial sector
    
    
    22,438
    
    
    
    13,310From the non-financial private sector and foreign residentsChecking accounts
    
    
    2,581,060
    
    
    
    2,599,682Savings accounts
    
    
    2,716,913
    
    
    
    2,780,350Time deposits
    
    
    6,031,882
    
    
    
    5,907,005Investment accounts
    
    
    155,936
    
    
    
    63,063Other
    
    
    321,020
    
    
    
    391,176Accrued interest, adjustments, foreign exchange and quoted
price differences payables
    
    
    61,147
    
    
    
    62,44215,828,357
    
    
    
    13,591,149OTHER LIABILITIES FROM FINANCIAL INTERMEDIATIONCentral Bank of Argentina  Other
    
    
    302,760
    
    
    
    347,896Banks and international institutions
    
    
    224,968
    
    
    
    160,939Non-subordinated Corporate Bonds
    
    
    708,354
    
    
    
    780,590Amounts payable for spot and forward purchases pending settlement
    
    
    68,499
    
    
    
    158,765Securities and foreign currency to be delivered under spot and
forward sales pending settlement
    
    
    679,495
    
    
    
    445,799Premiums on options sold
    
    
    
    
    
    
    2Financing received from Argentine financial institutionsInterfinancing  (received call)
    
    
    25,000
    
    
    
    46,000Other financing received from Argentine financial institutions
    
    
    24,139
    
    
    
    90,806Accrued interest payables
    
    
    16
    
    
    
    53Forward transactions amounts pending settlement without delivery
of underlying asset
    
    
    5,949
    
    
    
    Other
    
    
    625,981
    
    
    
    493,613Accrued interest, adjustments, foreign exchange and quoted price
differences payables
    
    
    49,783
    
    
    
    47,3872,714,944
    
    
    
    2,571,850OTHER LIABILITIESDividends payables
    
    
    
    
    
    
    1Professional fees
    
    
    676
    
    
    
    732Other
    
    
    442,026
    
    
    
    240,482442,702
    
    
    
    241,215PROVISIONS
    
    
    83,004
    
    
    
    101,333SUBORDINATED CORPORATE BONDS
    
    
    521,681
    
    
    
    490,695ITEMS PENDING ALLOCATION
    
    
    2,105
    
    
    
    1,644MINORITY INTEREST IN SUBSIDIARIES
    
    
    15,607
    
    
    
    12,640TOTAL LIABILITIES
    
    
    19,608,400
    
    
    
    17,010,526SHAREHOLDERS EQUITY
    
    
    2,816,597
    
    
    
    2,707,706TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    
    22,424,997
    
    
    
    19,718,232
 (1)
    
    See note 4.2. to the accompanying financial statements. 
  F - 6




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2008 AND 2007
 MEMORANDUM ACCOUNTS
 2008
    
    
    2007 (1)DEBIT-BALANCE ACCOUNTS
    
    
    13,368,350
    
    
    
    10,797,838Contingent
    
    
    3,669,663
    
    
    
    3,698,827Guarantees received
    
    
    3,295,985
    
    
    
    3,229,071Other not covered by debtors classification standards
    
    
    346
    
    
    
    524Contingent debit-balance contra accounts
    
    
    373,332
    
    
    
    469,232Control
    
    
    5,435,013
    
    
    
    5,947,864Receivables classified as irrecoverable
    
    
    774,299
    
    
    
    832,822Other
    
    
    4,401,411
    
    
    
    4,931,358Control debit-balance contra accounts
    
    
    259,303
    
    
    
    183,684Derivatives
    
    
    3,598,362
    
    
    
    576,845Notional value of call options taken
    
    
    24,349
    
    
    
    Notional value of forward transactions without
delivery of underlying asset
    
    
    2,219,777
    
    
    
    331,411Interest rate swap
    
    
    39,422
    
    
    
    36,238Derivatives debit-balance contra accounts
    
    
    1,314,814
    
    
    
    209,196Trust activity
    
    
    665,312
    
    
    
    574,302Trust funds
    
    
    665,312
    
    
    
    574,302
 (1)
    
    See note 4.2. to the accompanying financial statements.  F - 7




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2008 AND 2007
 MEMORANDUM ACCOUNTS
 2008
    
    
    2007 (1)CREDIT-BALANCE ACCOUNTS
    
    
    (13,368,350
    )
    
    
    (10,797,838
    )Contingent
    
    
    (3,669,663
    )
    
    
    (3,698,827
    )Guarantees provided to the Central Bank of Argentina
    
    
    (141,353
    )
    
    
    (163,122
    )Other guarantees provided covered by debtors classification standards
    
    
    (84,136
    )
    
    
    (115,930
    )Other guarantees provided not covered by debtors classification standards
    
    
    (57,758
    )
    
    
    (58,773
    )Other covered by debtors classification standards
    
    
    (90,085
    )
    
    
    (131,407
    )Contingent credit-balance contra accounts
    
    
    (3,296,331
    )
    
    
    (3,229,595
    )Control
    
    
    (5,435,013
    )
    
    
    (5,947,864
    )Checks to be credited
    
    
    (259,303
    )
    
    
    (183,684
    )Control credit-balance contra accounts
    
    
    (5,175,710
    )
    
    
    (5,764,180
    )Derivatives
    
    
    (3,598,362
    )
    
    
    (576,845
    )Notional value of call options sold
    
    
    
    
    
    
    (549
    )Notional value of put options sold
    
    
    (99,826
    )
    
    
    (113,809
    )Notional value of forward transactions without delivery of underlying asset
    
    
    (1,214,988
    )
    
    
    (94,838
    )Derivatives credit-balance contra accounts
    
    
    (2,283,548
    )
    
    
    (367,649
    )Trust activity
    
    
    (665,312
    )
    
    
    (574,302
    )Trust activity credit-balance contra accounts
    
    
    (665,312
    )
    
    
    (574,302
    )
 (1)
    
    See note 4.2. to the accompanying financial statements. 
  F - 8




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 FOR THE YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006
 2008
    
    
    2007 (1)
    
    
    2006 (1)FINANCIAL INCOMEInterest on cash and due from banks
    
    
    7,010
    
    
    
    19,917
    
    
    
    11,682Interest on loans to the financial sector
    
    
    15,584
    
    
    
    32,157
    
    
    
    16,720Interest on overdrafts
    
    
    357,215
    
    
    
    177,490
    
    
    
    110,721Interest on documents
    
    
    184,852
    
    
    
    103,428
    
    
    
    53,173Interest on mortgage loans
    
    
    97,057
    
    
    
    68,065
    
    
    
    48,506Interest on pledged loans
    
    
    64,499
    
    
    
    51,480
    
    
    
    43,038Interest on credit card loans
    
    
    117,952
    
    
    
    55,665
    
    
    
    30,969Interest on other loans
    
    
    1,032,837
    
    
    
    578,737
    
    
    
    272,935Interest on other receivables from financial intermediation
    
    
    14,416
    
    
    
    18,471
    
    
    
    15,050Income from government and private securities, net
    
    
    641,299
    
    
    
    488,757
    
    
    
    324,178Income from guaranteed loans  Presidential Decree No. 1,387/01
    
    
    37,043
    
    
    
    35,043
    
    
    
    29,898Net income from options
    
    
    261
    
    
    
    1,604
    
    
    
    CER (Benchmark Stabilization Coefficient) adjustment
    
    
    70,477
    
    
    
    78,065
    
    
    
    84,951CVS (Salary Variation Coefficient) adjustment
    
    
    818
    
    
    
    1,605
    
    
    
    1,947Difference in quoted prices of gold and foreign currency
    
    
    143,094
    
    
    
    48,823
    
    
    
    40,007Other
    
    
    245,446
    
    
    
    131,115
    
    
    
    71,4323,029,860
    
    
    
    1,890,422
    
    
    
    1,155,207FINANCIAL EXPENSEInterest on checking accounts
    
    
    17,708
    
    
    
    19,968
    
    
    
    9,475Interest on savings accounts
    
    
    14,534
    
    
    
    11,372
    
    
    
    6,736Interest on time deposits
    
    
    933,881
    
    
    
    457,395
    
    
    
    233,697Interest on interfinancing received loans (received call)
    
    
    3,909
    
    
    
    4,608
    
    
    
    801Interest on other financing from financial institutions
    
    
    28
    
    
    
    226
    
    
    
    252Interest on other liabilities from financial intermediation
    
    
    91,083
    
    
    
    70,706
    
    
    
    14,421Interest on subordinated bonds
    
    
    47,523
    
    
    
    49,858
    
    
    
    2,017Other interest
    
    
    8,762
    
    
    
    9,768
    
    
    
    12,410CER adjustment
    
    
    32,946
    
    
    
    43,717
    
    
    
    55,732Contribution to Deposit Guarantee Fund
    
    
    25,945
    
    
    
    20,182
    
    
    
    12,753Net loss from options
    
    
    
    
    
    
    
    
    
    
    371Other
    
    
    165,743
    
    
    
    117,465
    
    
    
    46,2321,342,062
    
    
    
    805,265
    
    
    
    394,897GROSS INTERMEDIATION MARGIN  GAIN
    
    
    1,687,798
    
    
    
    1,085,157
    
    
    
    760,310PROVISION FOR LOAN LOSSES
    
    
    297,606
    
    
    
    94,717
    
    
    
    59,773SERVICE-CHARGE INCOMERelated to lending transactions
    
    
    63,669
    
    
    
    53,995
    
    
    
    35,964Related to deposits
    
    
    587,426
    
    
    
    398,569
    
    
    
    258,855Other commissions
    
    
    23,528
    
    
    
    21,687
    
    
    
    19,567Other
    
    
    217,077
    
    
    
    188,075
    
    
    
    137,846891,700
    
    
    
    662,326
    
    
    
    452,232
 (1)
    
    See note 4.2. to the accompanying financial statements.  F - 9




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 FOR THE YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006
 2008
    
    
    2007 (1)
    
    
    2006 (1)SERVICE-CHARGE EXPENSECommissions
    
    
    57,077
    
    
    
    49,965
    
    
    
    34,499Other
    
    
    115,324
    
    
    
    100,317
    
    
    
    58,824172,401
    
    
    
    150,282
    
    
    
    93,323ADMINISTRATIVE EXPENSESPersonnel expenses
    
    
    798,236
    
    
    
    589,021
    
    
    
    396,338Directors and statutory auditors fees
    
    
    26,941
    
    
    
    37,695
    
    
    
    14,362Other professional fees
    
    
    55,012
    
    
    
    42,428
    
    
    
    39,670Advertising and publicity
    
    
    53,178
    
    
    
    50,343
    
    
    
    31,866Taxes
    
    
    12,391
    
    
    
    10,345
    
    
    
    7,551Depreciation of equipment
    
    
    50,543
    
    
    
    42,723
    
    
    
    29,231Amortization of organization costs
    
    
    25,557
    
    
    
    17,923
    
    
    
    13,263Other operating expenses
    
    
    170,926
    
    
    
    144,158
    
    
    
    101,546Other
    
    
    18,615
    
    
    
    19,261
    
    
    
    17,1731,211,399
    
    
    
    953,897
    
    
    
    651,000NET INCOME FROM FINANCIAL INTERMEDIATION
    
    
    898,092
    
    
    
    548,587
    
    
    
    408,446OTHER INCOMEIncome from long-term investments
    
    
    25,847
    
    
    
    890
    
    
    
    289Penalty interest
    
    
    14,982
    
    
    
    7,580
    
    
    
    5,553Recovered loans and allowances reversed
    
    
    94,490
    
    
    
    133,118
    
    
    
    192,508CER adjustment
    
    
    95
    
    
    
    194
    
    
    
    283Other
    
    
    53,036
    
    
    
    41,743
    
    
    
    36,174188,450
    
    
    
    183,525
    
    
    
    234,807OTHER EXPENSEPenalty interest and charges payable to the Central Bank of Argentina
    
    
    181
    
    
    
    64
    
    
    
    38Charge for other-receivables uncollectibility and other allowances
    
    
    37,242
    
    
    
    15,599
    
    
    
    26,713Amortization of differences from deposits dollarization
    
    
    29,509
    
    
    
    29,279
    
    
    
    19,477Depreciation and loss of other assets
    
    
    2,151
    
    
    
    5,303
    
    
    
    3,567Goodwill amortization
    
    
    8,439
    
    
    
    9,250
    
    
    
    4,766Other
    
    
    84,409
    
    
    
    82,989
    
    
    
    84,213161,931
    
    
    
    142,484
    
    
    
    138,774MINORITY INTEREST IN SUBSIDIARIES
    
    
    (3,354
    )
    
    
    (2,083
    )
    
    
    (3,178
    )INCOME BEFORE INCOME TAX
    
    
    921,257
    
    
    
    587,545
    
    
    
    501,301INCOME TAX
    
    
    261,207
    
    
    
    92,345
    
    
    
    76,961NET INCOME FOR THE FISCAL YEAR
    
    
    660,050
    
    
    
    495,200
    
    
    
    424,340NET INCOME PER SHARE (2)  stated in pesos
    
    
    1.00
    
    
    
    0.72
    
    
    
    0.64
 (1)
    
    See note 4.2. to the accompanying financial statements.(2)
    
    See note 9. to the accompanying financial statements. 
  F - 10




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
 FOR THE YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006
 Adjustments
    
    
    Earnings reservedCapital
    
    
    Stock
    
    
    to
    
    
    
    
    
    
    Specialstock
    
    
    issuance
    
    
    shareholders
    
    
    
    
    
    
    Corporate
    
    
    
    
    
    
    UnappropriatedChanges
    
    (1)
    
    
    premium
    
    
    equity
    
    
    Legal
    
    
    Bonds
    
    
    Voluntary
    
    
    earnings (1)
    
    
    TotalBalances as of December 31, 2005
    
    
    608,979
    
    
    
    84
    
    
    
    4,511
    
    
    
    245,302
    
    
    
    
    
    
    
    211
    
    
    
    630,565
    
    
    
    1,489,652Distribution of unappropriated
retained earnings approved by the
Shareholders Meeting held on April,
28, 2006:- Legal reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    52,543
    
    
    
    
    
    
    
    
    
    
    
    (52,543
    )- Cash dividends (2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (68,395
    )
    
    
    (68,395
    )Share subscription approved by
Shareholders Meeting held on
September 26, 2005 (1)
    
    
    75,000
    
    
    
    394,500
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    469,500Net income for the fiscal year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    424,340
    
    
    
    424,340Balances as of December 31, 2006
    
    
    683,979
    
    
    
    394,584
    
    
    
    4,511
    
    
    
    297,845
    
    
    
    
    
    
    
    211
    
    
    
    933,967
    
    
    
    2,315,097Distribution of unappropriated
earnings, as approved by the
Shareholders Meeting held on April,
26, 2007:- Legal reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    84,860
    
    
    
    
    
    
    
    
    
    
    
    (84,860
    )- Cash dividends (2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (102,591
    )
    
    
    (102,591
    )- Special reserve  Corporate Bonds
(3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    45,515
    
    
    
    
    
    
    
    (45,515
    )Reversal of Special Reserve 
Corporate Bonds (3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (45,515
    )
    
    
    
    
    
    
    45,515Net income for the fiscal year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    495,200
    
    
    
    495,200Balances as of December 31, 2007
    
    
    683,979
    
    
    
    394,584
    
    
    
    4,511
    
    
    
    382,705
    
    
    
    
    
    
    
    211
    
    
    
    1,241,716
    
    
    
    2,707,706
  F - 11




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
 FOR THE YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006
 Adjustments
    
    
    Earnings reservedCapital
    
    
    
    
    
    
    to
    
    
    
    
    
    
    Specialstock
    
    
    Stock
    
    
    shareholders 
    
    
    
    
    
    
    Corporate
    
    
    
    
    
    
    UnappropriatedChanges
    
    (1)
    
    
    issuance premium
    
    
    equity
    
    
    Legal
    
    
    Bonds
    
    
    Voluntary
    
    
    earnings (1)
    
    
    TotalDistribution of unappropriated
earnings, as approved by the
Shareholders Meeting held on
April, 29,2008:- Legal reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    99,038
    
    
    
    
    
    
    
    
    
    
    
    (99,038
    )- Cash dividends (2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (170,995
    )
    
    
    (170,995
    )- Special reserve  Corporate
Bonds (3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    46,083
    
    
    
    
    
    
    
    (46,083
    )Reversal of Special Reserve- Corporate Bonds (3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (46,083
    )
    
    
    
    
    
    
    46,083Own shares reacquired (1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (380,164
    )
    
    
    (380,164
    )Net income for the fiscal year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    660,050
    
    
    
    660,050Balances as of December 31, 2008
    
    
    683,979
    
    
    
    394,584
    
    
    
    4,511
    
    
    
    481,743
    
    
    
    
    
    
    
    211
    
    
    
    1,251,569
    
    
    
    2,816,597
 (1)
    
    As of December 31, 2008 and 2007, the outstanding capital stock is 608,437 and 683,943,
respectively. See note 9. to the accompanying financial statements.(2)
    
    Through resolutions of April 21, 2006, April 16, 2007 and April 11, 2008, respectively, the
Central Bank authorized the above mentioned cash dividends distribution.(3)
    
    See note 10. to the accompanying financial statements. 
  F - 12




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
 2008
    
    
    2007 (1)Changes in cash and cash equivalentsCash and cash equivalents at beginning of fiscal year
    
    
    3,117,426
    
    
    
    2,626,908Cash and cash equivalents at end of fiscal year
    
    
    3,523,897
    
    
    
    3,117,426Net increase in cash and cash equivalents
    
    
    406,471
    
    
    
    490,518Causes of changes in cash and cash equivalentsOperating activitiesNet collections / (payments):- Government and private securities
    
    
    80,038
    
    
    
    (68,837
    )- Loans- to the financial sector
    
    
    95,190
    
    
    
    310,024- to the non-financial government sector
    
    
    66,026
    
    
    
    36,674- to the non-financial private sector and foreign residents
    
    
    236,273
    
    
    
    (2,687,238
    )- Other receivables from financial intermediation
    
    
    (53,947
    )
    
    
    (509,249
    )- Assets subject to financial leases
    
    
    85,202
    
    
    
    (31,295
    )- Deposits- from the financial sector
    
    
    10,705
    
    
    
    8,232- from the non-financial government sector
    
    
    1,981,008
    
    
    
    473,453- from the non-financial private sector and foreign residents
    
    
    (668,310
    )
    
    
    2,614,398- Other liabilities from financial intermediation- financing facilities from the financial sector (received calls)
    
    
    (866
    )
    
    
    (3,320
    )- others (except liabilities included under financing activities)
    
    
    (91,712
    )
    
    
    278,226Collections related to service-change income
    
    
    882,354
    
    
    
    658,863Payments related to service-charge expenses
    
    
    (168,091
    )
    
    
    (146,606
    )Administrative expenses paid
    
    
    (1,120,663
    )
    
    
    (873,034
    )Payments of organization and development expenses
    
    
    (45,258
    )
    
    
    (57,438
    )Net collections from penalty interest
    
    
    14,801
    
    
    
    7,569Differences from payments related to court orders
    
    
    (16,733
    )
    
    
    (34,445
    )Collections of dividends from other companies
    
    
    26,939
    
    
    
    636Other (payments)/collections related to other income and losses
    
    
    (12,831
    )
    
    
    15,679Net collections/(payments) from other operating activities
    
    
    6,636
    
    
    
    (14,711
    )Payment of income tax / minimum presumed income tax
    
    
    (81,967
    )
    
    
    (80,183
    )Net cash flows generated in/(used in) operating activities
    
    
    1,224,794
    
    
    
    (102,602
    )Investing activitiesNet payments for bank premises and equipment
    
    
    (72,819
    )
    
    
    (77,661
    )Net collections/(payments) for other assets
    
    
    23,731
    
    
    
    (1,559
    )Payments from purchases of investments in other companies
    
    
    (635
    )
    
    
    Collections from sales of investments in other companies
    
    
    922
    
    
    
    33Other payments for investing activities
    
    
    5,032
    
    
    
    (1,678
    )Net cash flows used in investing activities
    
    
    (43,769
    )
    
    
    (80,865
    )Financing activitiesNet collections / (payments):- Non-subordinated corporate bonds
    
    
    (133,211
    )
    
    
    749,464- Central Bank of Argentina- Other
    
    
    (79,206
    )
    
    
    (53,681
    )- Banks and International Institutions
    
    
    47,204
    
    
    
    (15,844
    )- Subordinated corporate bonds
    
    
    (18,397
    )
    
    
    (13,240
    )- Financing received from Argentine financial institutions
    
    
    (63,489
    )
    
    
    82,885Irrevocable capital
    
    
    
    
    
    
    182Payment of dividends
    
    
    (171,004
    )
    
    
    (102,591
    )Other payments from financing activities- Own shares reacquired
    
    
    (380,164
    )
    
    
    - Other collections
    
    
    
    
    
    
    (3,230
    )Net cash flows (used in)/generated in financing activities
    
    
    (798,267
    )
    
    
    643,945Financial income and holding gains on cash and cash equivalents
    
    
    23,713
    
    
    
    30,040Net increase in cash and cash equivalents
    
    
    406,471
    
    
    
    490,518
 (1)
    
    See notes 4.2. and 4.4.s) to the accompanying financial statements.  F - 13




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 FOR THE YEAR ENDED DECEMBER 31, 2006
 2006 (1)Cash provided by (used in) operating activitiesFinancial income collected
    
    
    1,181,118Service-charge income collected
    
    
    452,627Other sources of cash (2)
    
    
    560,562Less:Financial expenses paid
    
    
    (410,354
    )Services-charge expenses paid
    
    
    (92,069
    )Administrative expenses paid
    
    
    (599,435
    )Other uses of cash
    
    
    (158,906
    )Net cash provided by operating activities
    
    
    933,543Plus:Cash provided by (used in) investing activitiesDecrease in government and private securities
    
    
    628,496Increase in loans
    
    
    (2,052,258
    )Decrease in other receivables from financial intermediation
    
    
    646,052Increase in other assets
    
    
    (394,844
    )Net cash used in investing activities
    
    
    (1,172,554
    )Plus:Cash provided by (used in) financing activitiesIncrease in deposits
    
    
    1,541,983Increase in other liabilities (3)
    
    
    520,492Decrease in other liabilities from financial intermediation
    
    
    (786,790
    )Capital increase
    
    
    469,500Cash dividends paid
    
    
    (68,395
    )Net cash provided by financing activities
    
    
    1,676,790Increase in cash and cash equivalents
    
    
    1,437,779Cash and cash equivalents at the beginning of fiscal year
    
    
    1,189,129Cash and cash equivalents at the end of the fiscal year
    
    
    2,626,908
 (1)
    
    See notes 4.2. and 4.4.s) to the accompanying financial statements.(2)
    
    Includes 150,190 related to Banco del Tucumán S.A. (see note 3.6.) and 261,787 related
to Nuevo Banco Bisel S.A. (see note 3.7.).(3)
    
    Including the effect deriving from the issuance of Subordinated Corporate Bonds
mentioned in note 10.c.1). 
  F - 14




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 AS OF DECEMBER 31, 2008 AND 2007
  1.
    
    OVERVIEW OF THE BANK
         2.
    
    CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT AND THE SITUATIONS OF THE FINANCIAL SYSTEM
AND THE BANK
 The financial and capital markets
    F - 15




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
      Legal actions
       F - 16




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
     3.
    
    BANK OPERATIONS
 3.1.
    
    Agreement with the Misiones Provincial Government
    3.2.
    
    Agreement with the Salta Provincial Government
    3.3.
    
    Agreement with the Jujuy Provincial Government
    F - 17




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  3.4.
    
    Uniones Transitorias de Empresas (joint ventures)
 a)
    
    Banco Macro S.A.  Siemens Itron Business Services S.A.The Bank participates in the Banco Macro S.A:  Siemens Itron  Unión Transitoria de
Empresas (a joint venture jointly controlled having an interest of 50%), under the
agreement entered into by the former Banco Macro S.A. and Siemens Itron Business
Services S.A. on April 7, 1998. The current subject-matter of the Unión Transitoria de
Empresas (joint venture) agreement is to provide a provincial data processing center to
manage tax-related assets, to modernize tax collection systems and procedures in the
province of Salta, and to manage and recover the tax and municipal assessment debt.As of December 31, 2008 and 2007, the net assets amounted to 4,153 and 2,922,
respectively, and net income of the joint venture amounted to 7,217 and 8,311,
respectively. Under Central Bank rules, this interest is consolidated through the
proportionate consolidation method (both net assets and income).b)
    
    Banco Macro Bansud S.A.  Montamat & Asociados S.R.L.On October 22, 2004, the Bank entered into a joint venture agreement named BMB M&A 
Unión Transitoria de Empresas (jointly controlled having an interest of 50%) with
Montamat & Asociados S.R.L. The subject-matter of such agreement will be to render
audit services related to oil & gas royalties and tax easements in the province of
Salta to optimize the collection thereof.As of December 31, 2008, and 2007, the net assets amounted to 4 and 5,313,
respectively.Also, as of December 31, 2008, the net loss recorded for the Banks interest in such
joint venture amounted to 78, while as of December 31, 2007, the Bank recorded net
income of 4,276. Under Central Bank rules, this interest is consolidated through the
proportionate consolidation method (both net assets and net income).
 3.5.
    
    Legal Merger of Nuevo Banco Suquía S.A.
       F - 18




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  3.6.
    
    Banco del Tucumán S.A.
     Cash
    
    
    150,190Government and private securities
    
    
    198,411Loans
    
    
    205,614Other receivables from financial intermediation
    
    
    93,227Assets subject to financial leases
    
    
    3,174Investments in other companies
    
    
    708Other receivables
    
    
    8,061Bank premises and equipment, net
    
    
    26,131Other assets
    
    
    820Intangible assets
    
    
    14,261Items pending allocation
    
    
    15Total assets
    
    
    700,612Deposits
    
    
    594,530Other liabilities from financial intermediation
    
    
    53,573Other liabilities
    
    
    11,364Provisions
    
    
    994Items pending allocation
    
    
    86Total liabilities
    
    
    660,547Total shareholders equity
    
    
    40,065Total liabilities and shareholders equity
    
    
    700,612
     F - 19




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
     3.7.
    
    Nuevo Banco Bisel S.A.
      Cash
    
    
    261,787Government and private securities
    
    
    503,720Loans
    
    
    874,128Other receivables from financial intermediation
    
    
    40,730Assets subject to financial leases
    
    
    30,925Investments in other companies
    
    
    1,338Other receivables
    
    
    19,869Bank premises and equipment, net
    
    
    59,885Other assets
    
    
    27,377Intangible assets
    
    
    4,743Items pending allocation
    
    
    142Total assets
    
    
    1,824,644Deposits
    
    
    1,392,676Other liabilities from financial intermediation
    
    
    379,201Other liabilities
    
    
    19,929Provisions
    
    
    11,790Items pending allocation
    
    
    938Total liabilities
    
    
    1,804,534Total shareholders equity
    
    
    20,110Total liabilities and shareholders equity
    
    
    1,824,644
  F - 20




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
    Legal merger of Nuevo Banco Bisel S.A.
    3.8.
    
    Pro forma information
   F - 21




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Pro Forma Central Bank rulesYear ended December 31,2006 (1) (unaudited)Financial income
    
    
    1,297,708Financial expenses
    
    
    (461,725
    )Gross intermediation margin  Gain
    
    
    835,983Provision for loan losses
    
    
    (72,400
    )Service charge income
    
    
    516,159Service charge expenses
    
    
    (102,689
    )Administrative expenses
    
    
    (787,312
    )Net income from financial intermediation
    
    
    389,741Other income
    
    
    270,441Other expenses
    
    
    (203,168
    )Minority interest
    
    
    (1,747
    )Net income before income tax
    
    
    455,267Income Tax
    
    
    (76,961
    )Net income for the year
    
    
    378,306Basic Net Earning Per Share  stated in pesos
    
    
    0.57
 (1)
    
    See also note 4.2.
 4.
    
    SIGNIFICANT ACCOUNTING POLICIES
   4.1.
    
    Consolidation and basis of presentation
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BANCO MACRO S.A. AND SUBSIDIARIES
  EquityInvestmentPercentage held of
    
    
    amounts as ofShares
    
    
    Capital
    
    
    
    
    
    
    December 31,Company
    
    Class
    
    Number
    
    
    Stock
    
    
    Votes
    
    
    2008Nuevo Banco Bisel S.A. (a)
    
    Common
    
    
    841,682,603Preferred
    
    
    66,604,774
    
    
    
    99.997
    %
    
    
    99.997
    %
    
    
    1,384,059Banco del Tucumán S.A. (a)
    
    Common
    
    
    395,341
    
    
    
    89.932
    %
    
    
    89.932
    %
    
    
    137,741Macro Bank Limited (b)
    
    Common
    
    
    9,816,899
    
    
    
    99.999
    %
    
    
    99.999
    %
    
    
    99,973Macro Securities S.A. Sociedad de Bolsa (c)
    
    Common
    
    
    12,776,680
    
    
    
    99.921
    %
    
    
    99.921
    %
    
    
    17,477Sud Inversiones & Análisis S.A. (c)
    
    Common
    
    
    6,475,143
    
    
    
    98.605
    %
    
    
    98.605
    %
    
    
    12,376Macro Fondos S.G.F.C.I. S.A. (c)
    
    Common
    
    
    327,183
    
    
    
    99.936
    %
    
    
    99.936
    %
    
    
    1,180
 (a)
    
    Nuevo Banco Bisel S.A. has been consolidated since August 11, 2006 and Banco
del Tucumán S.A. since May 5, 2006 (see notes 3.6. and 3.7).(b)
    
    Consolidates with Sud Asesores (ROU) S.A. (voting rights: 100%, equity
interest: 671).(c)
    
    Until March 31, 2008, Macro Fondos S.G.F.C.I. S.A. was consolidated into Sud
Inversiones & Análisis S.A. As from such date it is consolidated into Macro Securities
S.A. Sociedad de Bolsa.
      (a)
    
    Assets and liabilities were translated at the reference exchange rate or the
exchange rate reported by the Central Bank trading room and effective for the foreign
currency at the closing of transactions on the last business day of the years ended
December 31, 2008, and 2007.
 (b)
    
    Figures related to the owners contributions (capital stock, additional
paid-in capital and irrevocable capital contributions) were translated applying the
effective exchange rates as of the date on which such contributions were paid in.
 (c)
    
    Retained earnings were estimated by the difference between assets,
liabilities and owners contributions, translated into pesos, as indicated above.
 (d)
    
    The amounts of results were translated into pesos, as described in (a) above.
The difference between the addition of the amounts and lump-sum income (loss) for each
year (difference between retained earnings at beginning of year and retained earnings
at year-end) was recorded in Financial income  Difference in quoted prices of gold
and foreign currency or Financial expense  Difference in quoted prices of gold
and foreign currency accounts, as the case may be.
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BANCO MACRO S.A. AND SUBSIDIARIES
 4.2.
    
    Comparative information
     4.3.
    
    Restatement into constant pesos
      i)
    
    Assets and liabilities are classified into monetary and non-monetary.
 ii)
    
    Monetary assets and liabilities are those that are not adjusted for
inflation, but generate a monetary gain (loss). The effect of inflation is broken down
depending on its origin, i.e., monetary gain (loss) on financial intermediation,
monetary gain (loss) on other transactions and monetary gain (loss) on other operating
expenses.
 iii)
    
    Non-monetary assets and liabilities, shareholders equity and
statement-of-income accounts are restated.
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BANCO MACRO S.A. AND SUBSIDIARIES
 4.4.
    
    Valuation methods
  a)
    
    Assets and liabilities denominated in foreign currency:The assets and liabilities denominated in US dollars were valued at Central Bank
benchmark US dollar exchange rate effective as of the closing date of transactions on
the last business day of each year. Additionally, assets and liabilities denominated in
other foreign currencies were translated at the exchange rate communicated by the
Central Banks dealing room. Foreign exchange differences were recorded in the
statement of income for each year.b)
    
    Government and private securities:
 b.1)
    
    Listed:
 i.
    
    Holdings in special investment accounts: as provided by
Central Bank Communiqué A 4861 dated October 30, 2008, as supplemented, the
Bank classified certain government securities under special investment
accounts. These government securities are recorded at their cost value
increased by their internal rate of return and adjusted by the benchmark
stabilization coefficient (CER), as applicable.In conformity with the abovementioned Communiqué, the cost of such holdings was
calculated using its market value at the time it was classified into this
category. The holdings maintained from September 30, 2008 through October 31,
2008 may be recorded without exceeding the book value as of September 30, 2008.Additionally, when the market value of each security is lower than the book value,
the accrual of the internal rate of return and the CER will be recorded in a
contra offset balance sheet account created for this purpose, until the book value
equals the market value. This offset account will be recognized in the income
statement when the market value of the securities is above their book value.
 ii.
    
    Other: they were valued at the quoted price of each security
effective on the last business day of each year. Differences in quoted market
values were recorded in the statement of income for each year.
 b.2)
    
    Unlisted:
 i.
    
    Instruments issued by the Central Bank: they were valued at
their cost value increased exponentially by their internal rate of return, as
provided by Central Bank Communiqué A 4,414.
 ii.
    
    Other: they were valued under the method established by
Central Bank Communiqué A 3,911, as supplemented.On January 22, 2009, through Communiqué A 4898, the Central Bank established the
new accounting method to record the holdings of unlisted government securities.In accordance with such Communiqué, holdings of government securities without
volatility published and included on the list of present values disseminated by
the Central Bank will be valued, as of period-end, at the higher of the present
value disseminated by the Central Bank and the book value as of January 31, 2009,
or at acquisition cost, net of debt services collected subsequently and the
related offset account, as further described below (book value).
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BANCO MACRO S.A. AND SUBSIDIARIES
 When the present value of these holdings is lower than their book value, the
accrual of interest and, if applicable, of the adjustment resulting from applying
CER will be recorded, on an accumulated basis, in an offset account created to
such end until the book value equals the present value, and such offset account
will be reversed into income as long as the present value is greater than the book
value of those holdings.The present values disseminated by the Central Bank arise from the curve of yields
on securities related to the same type of instrument, with normal and usual quoted
price and of similar duration, according to the methodology disseminated by such
institution.
 c)
    
    Assets included in the provisions of Central Bank Communiqué A 3,911, as
supplemented:
     Guaranteed LoansTechnical Value
    
    
    Carrying amount
    
    
    Discount2008
    
    
    850,452
    
    
    
    722,757
    
    
    
    127,6952007
    
    
    787,346
    
    
    
    729,862
    
    
    
    57,484
   
    
    Investment accounts (for a face value of 246,835): those bonds were
valued at acquisition cost (book value of guaranteed loans used in the exchange)
and would be increased by the accrual of the internal rate of return as from the
date of inclusion in this classification. The accruals of the internal rate of
return mentioned above will be charged to income.
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BANCO MACRO S.A. AND SUBSIDIARIES
 
    
    Unlisted holdings (for a face value of 93,327): those bonds were valued
at acquisition cost (book value of guaranteed loans used in the exchange) and as of
the period end, such holding will be valued at the higher of the present value
will be disseminated by the Central Bank and the acquisition cost increased by the
accrual of the internal rate of return, net of the related offset account, as
further described below (book value).
   d)
    
    Interest accrual:Interest has been accrued according to a compound interest formula in the period in
which it was generated, except interest on transactions in foreign currency and those
whose maturity does not exceed 92 days, on which interest has been accrued according to
a simple interest formula.The Bank suspends the interest accrual whenever loan payments are not settled
(generally, after 90 days) or when the recoverability of the collection of principal or
interest accrued is doubtful. Accrued interest is considered part of the loan balance
when determining the allowances for loan losses. Afterwards, interest is only recognized
on a cash basis.
 e)
    
    CER accrual:Receivables and payables have been indexed by the CER, wherever applicable, as follows:
 e.1)
    
    Holdings in investment accounts: as explained in note 4.4.b.1).i.e.2)
    
    Guaranteed Loans: as explained in note 4.4.c).e.3)
    
    Other loans and receivables from sale of assets: they were adjusted
according to Communiqué A 3,507, and supplementary regulations, which established
that payments made until September 30, 2002, were to be made under the original
conditions of each transaction and would be considered prepayments. As from
February 3, 2002, principal was adjusted by the CER trough year-end, where
applicable.e.4)
    
    Deposits and other assets and liabilities: they were adjusted by CER as
of the last business day of the year.
 f)
    
    Allowance for loan losses and provision for contingent commitments:These provisions have been calculated based on the estimated uncollectibility risk of
the Banks credit portfolio, which, among other factors, results from the evaluation of
the degree of debtors compliance and the guarantee/security supporting the respective
transactions, under Central Bank Communiqué A 2,950, as supplemented, and the Banks
provisioning policies.When loans covered by specific allowances are settled or generate a reversal of the
allowances recorded in the current year, and in cases where the allowances set in prior
years exceed what is considered necessary, the excess allowance is reversed with effects
on income for the current year.The recovery of receivables previously classified under Debit-balance control
memorandum accounts  Receivables classified as irrecoverable are charged directly to
income.
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BANCO MACRO S.A. AND SUBSIDIARIES
 The Bank assesses the credit risk related to possible commitments and determines the
appropriate amount of allowances to be recorded. The allowances related to amounts
recorded in memorandum accounts  possible commitments are included under Provisions.g)
    
    Loans and deposits of government securities:They were valued at the quoted price of each security effective on the last business day
of each year, plus the related accrued interest. Differences in quoted market values
were recorded in the statement of income as of those dates.h)
    
    Other receivables from financial intermediation and Other liabilities from financial
intermediation:
 h.1)
    
    Amounts receivable from spot and forward sales pending settlement and
amounts payable for spot and forward purchases pending settlement:They were valued based on the prices agreed upon for each transaction, plus related
premiums accrued through the end of each year-end.h.2)
    
    Securities and foreign currency to be received for spot and forward
purchases pending settlement and to be delivered for spot and forward sales pending
settlement:
 i)
    
    Listed: they were valued at the effective quoted prices for
each of them on the last business day of each year. Differences in quoted
market values were recorded in the statement of income for each year.ii)
    
    Unlisted: as of December 31, 2008, they were valued as
provided by Central Bank Communiqué A 4414, at their cost value increased
exponentially by their internal rate of return.
 h.3) Debt securities and certificates of participation in financial trusts:
 i.
    
    Debt securities: they were valued at their cost value
increased exponentially by their internal rate of return, as provided by
Central Bank Communiqué A 4,414.ii.
    
    Certificate of participation in the Fideicomiso
Financiero Suquía financial trust: they were valued based on the value of
incorporation to shareholders equity of former Nuevo Banco Suquía S.A.,
plus interest accrued, net of the redemptions made by the abovementioned
bank, in its capacity as beneficiary of the certificate of participation.iii.
    
    Other certificates of participation: they were stated
at nominal value increased, as the case may be, by interest accrued and CER
until the last business day of the fiscal year, converted into pesos
pursuant to the method described in note 4.4.a), as the case may be.
  h.4) Unlisted corporate bonds purchased:They were valued by increasing the value of holdings based on their internal rate
of return, as provided by Central Bank Communiqué A 4,414 and supplementary
regulations.h.5) Non-subordinated corporate bonds issued:They were valued at the amount due for principal and interest accrued as of
year-end, converted into pesos pursuant to the method described in note 4.4.a), as
the case may be.
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BANCO MACRO S.A. AND SUBSIDIARIES
 
 i)
    
    Assets subject to financial lease:
 They were valued at the net investment in the lease less unearned income and calculated
in accordance with the conditions agreed upon in the respective agreements, by applying
the interest rate imputed therein.
 j)
    
    Investments in other companies:
 j.1)
    
    In non-controlled financial institutions (less than 50% ownership
interest), supplementary and authorized activities:
 i.
    
    In Argentine pesos: they were valued at acquisition cost,
plus the nominal value of share-dividends received, restated as explained in
note 4.3.
 ii.
    
    In foreign currency: they were valued at the acquisition
cost in foreign currency, plus the nominal value of share-dividends
received, converted into pesos in accordance with the criterion stated in
note 4.4.a).
  j.2)
    
    In other non-controlled companies: they were valued at acquisition
cost, plus the nominal value of share-dividends received, restated as described in
note 4.3., net of allowances for impairment in value. Such net values do not exceed
the values calculated by the equity method on the basis of the latest financial
statements published by the companies.
 k)
    
    Bank premises and equipment and other assets:They were valued at their acquisition cost, restated as explained in note 4.3., less the
related accumulated depreciation calculated in proportion to their estimated months of
useful life.l)
    
    Intangible assets:
 l.1)
    
    Goodwill and organization and development costs (except differences due
to court orders  Nondeductible for the determination of the computable equity):
they were valued at their cost, restated as explained in note 4.3., less the
related accumulated amortization, calculated under the straight line method over
their estimated months of useful life.
 l.2)
    
    Differences due to court orders (amparos)  Nondeductible for the
determination of the computable equity: as of December 31, 2008, and 2007, the
Intangible Assets  Organization and development costs account includes 35,468
and 37,880 (net of amortization for 222,727 and 203,869, respectively). These
assets represent the difference between the amount of the original foreign currency
translated at the exchange rate applied upon payment of the recursos de amparo
(constitutional rights protection actions) and the amount recorded under Central
Bank rules effective (convert into Argentine pesos at the Ps. 1.4 to USD 1 exchange
rate, or its equivalent in other currencies, plus CER). Additionally, and as
disclosed in Central Bank Communiqué A 3,916, since April 2003 the sums related
to the amounts paid are amortized straight line over 60 months.The Central Bank informed the Bank through a notice dated August 4, 2008, that the
permission established by Communiqué A 3,916 (allowing the difference between the
amount of the amparos and the amounts recorded as liabilities to be capitalized
as intangible assets) is applicable only to such differences which were actually
paid. The Bank had also previously recorded intangible assets and an offsetting
liability for the estimated amounts of amparos payable in the future pursuant to
the application of the Argentine Supreme Court rulings dated December 27, 2006, and
August 28, 2007. As a result of the August 4, 2008 notice, as of December 31, 2008,
and 2007, the Bank reversed the intangible assets and related liabilities related
to the unpaid amparos.
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BANCO MACRO S.A. AND SUBSIDIARIES
 l.3)
    
    Difference from court deposits dollarization: as of December 31, 2008,
and 2007, the Intangible Assets  Organization and development expenses account
includes 5,189 and 15,570 (net of amortization for 15,562 and 5,293), respectively,
related to the capitalization of the dollarization effect regarding court deposits,
the amounts of which are amortized in 24 equal, monthly and consecutive
installments as from July 2007, as stated in Central Banks Communiqué A 4,686.
 m)
    
    Valuation of derivatives:
 m.1)
    
    Put options sold on BODEN 2012 and 2013 coupons: such options were
valued at the exchange value of the bonds plus interest and the CER adjustment
accrued on the last business day of each year- end.
 m.2)
    
    Interest rate swap: this included the equivalent in pesos of the
notional value in relation to which the Bank agreed to pay a variable rate and
charge a fixed rate.
 m.3)
    
    Forward transactions without delivery of underlying asset: they were
valued at the quoted price of the underlying assets upon maturity, effective on the
last business day of each fiscal year. Differences in quoted market values were
recorded in the statement of income for each year.m.4)
    
    Put options purchased: valued at the agreed-upon exercise price.
  n)
    
    Severance payments:The Bank charges these payments directly to income.o)
    
    Provisions included in liabilities:The Bank carries certain contingent liabilities related to current or future claims,
lawsuits and other proceedings, including those related to labor and other obligations.
Liabilities are recorded whenever it is probable that future costs will be incurred
whenever such costs may be reasonably estimated.p)
    
    Subordinated corporate bonds:They were valued at the amount due for principal and interest accrued as of each
year-end, converted into pesos pursuant to the method described in note 4.4.a.q)
    
    Shareholders equity accounts:
 q.1)
    
    They are restated as explained in note 4.3., except for the Capital
Stock account which has been kept at its original value. The adjustment resulting
from its restatement as explained in note 4.3. was included in the Adjustments to
Shareholders Equity account.
 q.2)
    
    Own shares reacquired: the purchase cost of own shares reacquired was
debited from the Unappropriated earnings account. Furthermore, the face value of
such shares was reclassified from Outstanding shares to Shares in treasury (see
also note 9).
 r)
    
    Consolidated Statement of income accounts:
 r.1)
    
    Accounts reflecting monetary transactions occurred in the fiscal year
ended December 31, 2008, 2007 and 2006 (financial income and expenses,
service-charge income and service-charge expenses, administrative expenses, loan
losses, etc.), were computed at their historical cost.
 r.2)
    
    Accounts reflecting the effects of the sale, retirement or consumption
of non-monetary assets were computed on the basis of restated amounts of such
assets, restated as mentioned in note 4.3.
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BANCO MACRO S.A. AND SUBSIDIARIES
 
 s)
    
    Statement of cash flowsFor the purpose of reporting cash flows, cash and cash equivalents include the following
accounts: Cash and Government and private securities which mature less than 90 days as
from their date of acquisition. As of December 31, 2008, 2007 and 2006 the Bank has no
such securities.Furthermore, through Communiqué A 4,667, as supplemented, the Central Bank introduced
certain changes to regulations related to the disclosure of the cash flows.
Consequently, the Bank prepared the statement of cash flows for the years ended December
31, 2008 and 2007 pursuant the new Central Bank regulations.Additionally, as set forth by the abovementioned Central Bank Communiqué, it is not
compulsory to disclose comparative information under the new regulations. Consequently,
the accompanying consolidated financial statements, include the statements of cash flows
for the year ended December 31, 2006 pursuant the regulations effective then.
 5.
    
    INCOME TAX AND MINIMUM PRESUMED INCOME TAX (TOMPI)
       Minimumpresumedincome tax
    
    
    
    
    Estimated taxcredit
    
    
    
    
    year to use it15,597
    
    
    
    
    
    200910,170
    
    
    
    
    
    201025,767
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BANCO MACRO S.A. AND SUBSIDIARIES
  6.
    
    DIFFERENCES BETWEEN CENTRAL BANK RULES AND PROFESSIONAL ACCOUNTING STANDARDS EFFECTIVE IN
ARGENTINA
   6.1.
    
    Valuation standards
 a)
    
    Holdings recorded in special investment accounts of unlisted government
securities, unlisted instruments issued by the Central Bank and loans to the
nonfinancial government sector: they are valued in accordance with the regulations and
standards issued by the Argentine Government and the Central Bank described in notes
4.4.b.1)i (Central Bank Communiqué A 4861, as supplemented), 4.4.b.2)i (Central Bank
Communiqué A 4414, as supplemented), 4.4.b.2)ii and 4.4.c) (Central Bank Communiqué
A 3911, as supplemented). In particular Central Bank Communiqué A 3911, as
supplemented, sets forth present value methods by applying regulated rates, technical
values and undiscounted cash flows. Additionally, effective loan-loss provisioning
regulations issued by the Central Bank establish that receivables from the
nonfinancial government sector are not subject to loan-loss provisioning, whereas
professional accounting standards require receivables to be compared with their
recoverable value every time financial statements are prepared.
  a.1)
    
    Holdings in special investment accounts: As of December 31, 2008, the
Bank charged 448,305, for certain own portfolio of Argentine government
securities. According to the professional accounting standards, as the Bank does
not show indications of keeping such holdings through their maturity, they should
be valued at their market value. According to this valuation method, the
shareholders equity and income for the year ended December 31, 2008, would have
decreased by 31,557.
 a.2)
    
    Holdings of unlisted government securities: As of December 31, 2008,
the Bank recorded Argentine Government bonds in pesos, maturing in 2013 (BONAR
XIII), for 51,864. According to professional accounting standards, such assets
should be stated at market value. According to this valuation method, the
shareholders equity and income for the year ended December 31, 2008, would have
decreased by 15,298.
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BANCO MACRO S.A. AND SUBSIDIARIES
  a.3)
    
    Unlisted instruments issued by the Central Bank: As of December 31,
2008, the Bank recorded unlisted own portfolio of Central Bank internal notes for
2,636,437. According to professional accounting standards, such assets should be
stated at market value. According to this valuation method, the shareholders
equity and income for the year ended December 31, 2008, would have decreased by
33,776.
 a.4)
    
    Guaranteed loans: As of December 31, 2008, 2007 and 2006, the Bank
charged Federal Government guaranteed loans deriving from the exchange set forth
by Presidential Decree No. 1,387/01 under Loans to the nonfinancial government
sector for a total net amount of 722,757, 729,862 and 771,465, respectively.
Considering the statements made in note 4.4.c) according to professional
accounting standards, these assets should be valued at their present value.
According to this valuation method, shareholders equity as of December 31, 2008
and 2007, would have decreased by 259,617 and 95,810, respectively, while as of
December 31, 2006, shareholders equity would have increased by 1,291.
Consequently, income for fiscal year 2008 would have decreased by 163,807.
 b)
    
    Intangible assets: As of December 31, 2008, 2007 and 2006, the Bank
capitalized under intangible assets 40,090, 51,975 and 47,613, net of the related
amortization amounts, regarding the foreign exchange differences mentioned in notes
4.4.l.2) and 4.4.l.3) related to the reimbursement in original currency of certain
deposits switched into pesos and the effect of court deposits dollarization. Such
accounting treatment differs from the valuation and disclosure methods established by
professional accounting standards, which require charging to income the higher costs
for court deposits dollarization and decreasing the book value of surpluses paid at
their recoverable value. As of the date of issuance of the accompanying financial
statements, the existing evidence does not support that the book value of such assets
is fully or partially recoverable. According to this valuation method, shareholders
equity as of December 31, 2008, 2007 and 2006, would have decreased by 40,090, 51,975
and 47,613, respectively. Consequently, income for fiscal year 2008 would have
increased by 11,885.
 c)
    
    As of December 31, 2008, 2007 and 2006, as mentioned in note 4.4.l.2), the
Bank recorded the effects of the Argentine Supreme Court rulings dated December 27,
2006, and August 28, 2007, upon payment of such precautionary measures, in conformity
with Central Bank indications in the notice dated August 4, 2008. According to the
professional accounting standards, as of December 31, 2008, 2007 and 2006, the Bank
should have recorded a liability of approximately 46,923, 63,014 and 27,132,
respectively. According to this valuation method, shareholders equity as of December
31, 2008, 2007 and 2006, would have decreased by 46,923, 63,014 and 27,132,
respectively. Consequently, income for fiscal year 2008 would have increased by
16,091.
 d)
    
    As of December 31, 2008, the Bank recorded 29,105 under Other receivables
from financial intermediation  nonsubordinated corporate bonds issued by the Bank
itself, mentioned in note 10.c.2) and c.3), valued as mentioned in note 4.4.h.4), and
56,738 under Other liabilities from financial intermediation and recorded the
liabilities generated by the issuance thereof, valued as mentioned in note 4.4.h.5).
According to professional accounting standards, such repurchased corporate bonds
should be considered settled. According to this valuation method, liabilities would
have been decreased and income of 27,633 would have been recognized. Consequently,
shareholders equity and income for the year ended December 31, 2008, would have
increased by 27,633.
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BANCO MACRO S.A. AND SUBSIDIARIES
 e)
    
    Income tax: The Bank and its subsidiaries record income tax by applying the
effective rate to the estimated taxable income without considering the effect of
temporary differences between book and taxable income. In accordance with
professional accounting standards, income tax should be recognized through the
deferred tax method, which consists in recognizing (as receivable or payable) the tax
effect of temporary differences between the book and tax valuation of assets and
liabilities, and in subsequently charging them to income for the years in which such
differences are reversed, considering the possible effects of utilizing net operating
losses (NOLs) in the future. If the deferred tax method had been applied, as of
December 31, 2008, 2007 and 2006, the Bank would have recorded an additional asset of
78,009, 64,415 and 172,336, respectively. Consequently, income for the year ended
December 31, 2008, would have increased by 13,594.
 f)
    
    Business combinations: Under the standards set forth by the Central Bank,
business acquisitions are recorded according to the book values of the acquired
company. Consequently, the difference between the purchase price and its interest
valued by the equity method in the books of the acquirer, is recorded as positive
goodwill (when the purchase price is higher than the interest valued by the equity
method) or negative goodwill (when the purchase price is lower than the interest
valued by the equity method), as the case may be. If goodwill is positive, Central
Bank standards establish that such goodwill should be amortized under the
straight-line method based on an estimated useful life of ten years. If goodwill is
negative, Central Bank Communiqué A 3984 establishes specific amortization methods;
the maximum amortization allowed per annum is 20%.
   f.1)
    
    Acquisition of Banco Bansud S.A.: Under Central Bank standards, the
Banks acquisition of Banco Bansud S.A. generated an original negative goodwill in
the amount of 365,560. As of December 31, 2008, and 2007, such goodwill was fully
amortized.According to professional accounting standards, the abovementioned purchase would
have generated an original negative goodwill in the amount of 39,722 and,
therefore, as of December 31, 2008, and 2007, the residual value of such goodwill
would have totaled 9,609 and 11,944, respectively. Consequently, shareholders
equity as of December 31, 2008, and 2007, would have decreased by 9,609 and
11,944, respectively, and additionally, income for the year ended December 31,
2008, would have increased by 2,335.f.2)
    
    Acquisition of Nuevo Banco Suquía S.A.: Under Central Bank standards,
the Banks acquisition of Nuevo Banco Suquia S.A. generated an original negative
goodwill in the amount of 483. As of December 31, 2008, and 2007, such goodwill
was recorded under Provisions (Liabilities).According to professional accounting standards, the abovementioned acquisition
would have led to an original negative goodwill in the amount of 72,445 and the
recognition of 38,043 of profit from the purchase. Therefore, as of December 31,
2008, and 2007, the residual value as of such goodwill would have totaled 61,082
and 63,865, respectively. Consequently, shareholders equity as of December 31,
2008, and 2007, would have decreased by 60,599 and 63,382, respectively, and
additionally, income for the year ended December 31, 2008, would have increased by
2,783.
  F - 34




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 f.3)
    
    Acquisition of Banco del Tucumán S.A.: Under Central Bank standards,
the Banks acquisition of Banco del Tucumán S.A. (see also note 3.6) generated an
original positive goodwill in the amount of 18,242. As of December 31, 2008, and
2007, the residual value of such goodwill totaled 13,395 and 15,222, respectively.According to professional accounting standards, the abovementioned acquisition
would not have generated goodwill. Consequently, shareholders equity as of
December 31, 2008, and 2007, would have decreased, as a result of the reversing of
positive goodwill recorded under Central Bank standards, by 13,395 and 15,222,
respectively, and additionally, income for the year ended December 31, 2008, would
have increased by 1,827.Additionally, the valuation of identifiable net assets at market values generated
adjustments, in addition to those specified in previous subsections, which as of
December 31, 2008, and 2007, would have increased shareholders equity by 21,160
and 27,326, respectively, and additionally, income for the year ended December 31,
2008, would have decreased by 6,166.f.4)
    
    Acquisition of Nuevo Banco Bisel S.A.: Under Central Bank standards,
the Banks acquisition of Nuevo Banco Bisel S.A. (see also note 3.7) generated an
original positive goodwill in the amount of 66,042. As of December 31, 2008, and
2007, the residual value of such goodwill totaled 50,082 and 56,686, respectively.According to professional accounting standards, the abovementioned purchase would
have generated the original negative goodwill in the amount of 107,745 and,
therefore, as of December 31, 2008, and 2007, the residual value of such goodwill
would have totaled 100,140 and 103,400, respectively. Consequently, shareholders
equity as of December 31, 2008, and 2007, would have decreased by 150,222 and
160,086, respectively, and additionally, income for the year ended December 31,
2008, would have increased by 9,864.Additionally, the valuation of identifiable net assets at market values generated
adjustments, in addition to those specified in previous subsections, which as of
December 31, 2008, and 2007, would have increased shareholders equity by 48,755
and 54,158, respectively, and additionally, income for the year ended December 31,
2008, would have decreased by 5,403.
 g)
    
    As of December 31, 2008, and 2007, the Bank recorded an interest rate swap
agreement in conformity with the Central Bank accounting standards, as mentioned in
note 4.4.m.2), in the amount of 39,422 and 36,238. According to professional
accounting standards effective in Argentina, the measurement of derivative financial
instruments should be made at their net realizable value if they have quoted prices,
or lacking this, using mathematical models that are appropriate in relation to the
instruments characteristics and which use data that can be verified. If those
standards had been applied, as of December 31, 2008, and 2007, the Bank should have
recorded assets in the amount of 3,560 and 2,446, respectively, which would have
entailed increases in the Banks shareholders equity by the same amounts.
Additionally, income for the year ended December 31, 2008, would have increased by
1,114.
  6.2.
    
    Disclosure aspects
   F - 35




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 7.
    
    RESTRICTED AND PLEDGED ASSETS
  7.1)
    
    Government and private securities :
 a)
    
    Secured Bonds under Presidential Decree No. 1,579/02 for 22,211 and 30,283
(face value Ps. 24,400,000), respectively, provided as security for the loan received
from Banco de Inversión y Comercio Exterior S.A. (BICE) to finance the Paso San
Francisco public work, in accordance with the note sent by the Bank on November 5,
2002, BICEs reply dated November 18, 2002, and the security agreement covering the
abovementioned securities dated January 29, 2004.
 b)
    
    Central Bank notes (NOBACs) for 118,580 and 16,575 (for a face value of Ps.
112,281,000 and 16,202,000), respectively, used to perform forward foreign currency
trading transactions through Rosario Futures Exchange (ROFEX) and Mercado Abierto
Electrónico S.A. (MAE).
 c)
    
    NOBACs, in Argentine pesos with variable coupon (BADLAR), for an amount of
37,289 and 48,087 (for a face value of Ps. 35,600,000 and 47,000,000, respectively)
used to guarantee the repayment of the loan in pesos agreed upon under the Global
Credit Program for Micro-, Small- and Medium-sized Enterprises received from the
Under-department of Small- and Medium-sized Enterprises and Regional Development
(SSEPyMEyDR).
 d)
    
    NOBAC for a book value of 12,498 and 26,146, were delivered to the Central
Bank of Argentina to guarantee the credit transaction granted according to the IADB
line for the global credit program for micro-, small- and medium-sized enterprise in
the amount of 7,882 and 9,131, respectively.
 e)
    
    NOBACs for an amount of 1,569 (for a face value of Ps. 1,500,000) as of
December 31, 2008, used as security for the Credit Program for Production and
Employment Development in the Province of San Juan (Communiqué A 769, as
supplemented).
 f)
    
    Federal government bonds in US dollars maturing in 2012 for 2,087 as of
December 31, 2008, used as security for a stock exchange-regulated repurchase
agreement executed on December 26, 2008, expiring on January 2, 2009.g)
    
    Other government securities for of 144 and 294, respectively.
 7.2)
    
    Loans:
 a)
    
    Agreements for loans backed by pledges and unsecured loans for 20,367 and
12,801, respectively, provided as guarantee in favor of the Mypes II Trust Fund, in
full compliance with the terms and conditions of the program called Mypes II (a) and
under the Global Credit Program for Small-sized and Micro-enterprises (see note 13.4).
 b)
    
    Guaranteed Loans and Mortgage Bills for 356,127 and 408,958, respectively,
securing the loan granted by the Central Bank to former Nuevo Banco Suquía S.A. and
Nuevo Banco Bisel S.A. to purchase Argentine Government Bonds 2005, 2007 and 2012,
used for the deposit exchange option exercised by the holders of deposits with such
bank. As mentioned in note 2, during January and February 2009, the Bank decided to
prepay the amount owed under such loan, delivering the guaranteed loans.
 7.3)
    
    Other receivables from financial intermediation:
 a)
    
    It includes Central Bank unavailable deposits for 552, as provided by Central
Bank Communiqué A 1,190. The Bank has recorded allowances covering 100% of this
receivable.
 b)
    
    Special guarantee checking accounts opened in the Central Bank for
transactions related to the electronic clearing houses and similar entities, for an
amount of 208,482 and 186,386, respectively.
 c)
    
    Contribution to the Risk Fund of Garantizar S.G.R. (mutual guarantee
association) for 9,961 and 10,000, respectively, made by the Bank on December 13,
2007, in its capacity as contributory partner of such company. Such contribution may
be fully or partially reimbursed once two years have elapsed from the date of
contribution.
  F - 36




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 d)
    
    Contribution to the Risk Fund of Macroaval S.G.R. (mutual guarantee
association) as of December 31, 2008, for 5,000, resulting from a contribution of the
abovementioned amount by the Bank on December 31, 2008, in its capacity as
contributory partner of such company. Such contribution may be fully or partially
reimbursed once two years have elapsed from the date of contribution.
 e)
    
    Equity interests in the Risk Fund of Puente Hnos. S.G.R. for 3,986 and 4,285,
respectively, resulting from a 4,000 contribution made on October 19, 2007. Such
contribution may be fully or partially reimbursed after two years as from the
contribution date.
 7.4)
    
    Investments in other companies:
 a)
    
    Irrevocable capital contributions to Tunas del Chaco S.A., Emporio del Chaco
S.A. and Proposis S.A. in the amount of 2,685 and 2,567, respectively, under the
deferment of federal taxes, subscribed in accordance with the promotion system
established by Law No. 22,021, as amended by Law No. 22,702, which provides that the
investment must be kept in assets for a term not shorter than five years starting on
January 1 of the year subsequent to that when the investment was made (investment
year:2003).
 b)
    
    Preferred shares of Nuevo Banco Bisel S.A. amounting to 66,240 with a secured
first-degree security agreement in favor of SEDESA to guarantee to such Company the
price payment and the compliance with all the obligations assumed in the purchase and
sale agreement dated May 28, 2007.As provided by the abovementioned agreement, and for the purpose of voting in favor of
the preliminary merger agreement mentioned in note 3.7, Banco Macro S.A. should have
SEDESAs consent or grant a new guaranty in replacement of the preferred shares or
proceed to settle the guaranteed obligations.In this regard, through note dated March 13, 2009, SEDESAs Board of Directors decided
to consent to the terms and scope of clause 7.1.5 of the purchase agreement of the
preferred shares issued by Nuevo Banco Bisel S.A. referred to above for the of Banco
Macro S.A.s Board of Directors to vote in favor of the decisions aimed at carrying out
merger process (see note 3.7).
 7.5)
    
    Other receivables:
 a)
    
    Security deposits related to credit card transactions for 19,305 and 17,715,
respectively.b)
    
    Other security deposits for 8,151 and 5,573, respectively.
 7.6)
    
    Bank premises and equipment and other assets:
   F - 37




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 8.
    
    TRANSACTIONS WITH RELATED PARTIES
  OtherNuevo
    
    
    
    
    
    
    
    
    
    
    Macro
    
    
    subsidiariesBanco
    
    
    Banco del
    
    
    Macro
    
    
    Securities S.A.
    
    
    and relatedBisel
    
    
    Tucumán
    
    
    Bank
    
    
    Sociedad de
    
    
    parties
    
    
    Total
    
    
    TotalS.A.
    
    
    S.A.
    
    
    Limited
    
    
    Bolsa
    
    
    (1)
    
    
    2008
    
    
    2007ASSETSCash
    
    
    
    
    
    
    30
    
    
    
    2,755
    
    
    
    
    
    
    
    
    
    
    
    2,785
    
    
    
    2,258Loans
    
    
    10,364
    
    
    
    25,016
    
    
    
    
    
    
    
    
    
    
    
    16,374
    
    
    
    51,754
    
    
    
    15,785Other receivables from financial
intermediation
    
    
    433,273
    
    
    
    86,238
    
    
    
    663
    
    
    
    5,588
    
    
    
    
    
    
    
    525,762
    
    
    
    443,099Assets subject to financial leases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    581
    
    
    
    581
    
    
    
    Other receivables
    
    
    662
    
    
    
    535
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,197
    
    
    
    1,349Items pending allocation
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    Total assets
    
    
    444,299
    
    
    
    111,823
    
    
    
    3,418
    
    
    
    5,588
    
    
    
    16,955
    
    
    
    582,083
    
    
    
    462,491LIABILITIESDeposits
    
    
    
    
    
    
    
    
    
    
    190
    
    
    
    6,276
    
    
    
    71,672
    
    
    
    78,138
    
    
    
    144,383Other liabilities from financial
intermediation
    
    
    435,149
    
    
    
    86,500
    
    
    
    663
    
    
    
    3,806
    
    
    
    
    
    
    
    526,118
    
    
    
    550,340Other liabilities
    
    
    148
    
    
    
    93
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    241
    
    
    
    69Total liabilities
    
    
    435,297
    
    
    
    86,593
    
    
    
    853
    
    
    
    10,082
    
    
    
    71,672
    
    
    
    604,497
    
    
    
    694,792MEMORANDUM ACCOUNTSDebit Balance accounts  Control
    
    
    
    
    
    
    
    
    
    
    317,920
    
    
    
    
    
    
    
    
    
    
    
    317,920
    
    
    
    18,550Debit Balance accounts  Derivatives
    
    
    614,685
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    614,685
    
    
    
    Credit Balance accounts  Contingent
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,213
    
    
    
    
    
    
    
    2,213
    
    
    
    2,213Credit Balance accounts  Derivatives
    
    
    171,753
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    35,992
    (2)
    
    
    207,745
    
    
    
    
  F - 38




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Macro
    
    
    OtherNuevo
    
    
    
    
    
    
    
    
    
    
    Securities
    
    
    subsidiariesBanco
    
    
    Banco del
    
    
    Macro
    
    
    S.A.
    
    
    and relatedBisel
    
    
    Tucumán
    
    
    Bank
    
    
    Sociedad de
    
    
    parties
    
    
    Total
    
    
    Total
    
    
    TotalS.A.
    
    
    S.A.
    
    
    Limited
    
    
    Bolsa
    
    
    (1)
    
    
    2008
    
    
    2007
    
    
    2006INCOME (LOSS)Financial income
    
    
    79,793
    
    
    
    2,942
    
    
    
    
    
    
    
    133
    
    
    
    3,332
    (2)
    
    
    86,200
    
    
    
    14,944
    
    
    
    1,263Financial expenses
    
    
    (16
    )
    
    
    (1,075
    )
    
    
    (7
    )
    
    
    
    
    
    
    (2,754
    )
    
    
    (3,852
    )
    
    
    (5,005
    )
    
    
    (4,887
    )Provision for loan losses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,527
    )
    
    
    Service-charge income
    
    
    4
    
    
    
    24
    
    
    
    
    
    
    
    37
    
    
    
    174
    
    
    
    239
    
    
    
    411
    
    
    
    110Service-charge expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    Other income
    
    
    
    
    
    
    4,762
    
    
    
    
    
    
    
    
    
    
    
    3,306
    
    
    
    8,068
    
    
    
    4,967
    
    
    
    Other expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (785
    )
    
    
    Total income / (expense)
    
    
    79,781
    
    
    
    6,653
    
    
    
    (7
    )
    
    
    170
    
    
    
    4,058
    
    
    
    90,655
    
    
    
    12,004
    
    
    
    (3,514
    )
 (1)
    
    Related to receivables from and payables to other parties related to the Bank for
transactions performed in the normal course of business, under normal market conditions, in
terms of interest rates and prices, as well as guarantees required.(2)
    
    The Bank had recorded foreign currency trading transactions without delivery of the
underlying asset and involving related parties, in its memorandum accounts, for a net
(selling) position of 35,992. According to the Banks policy, they are matched in terms of
amounts and maturity with transactions carried out with third parties who are not related
parties. As of December 31, 2008, the net intermediation income from such transaction
generated earnings of around 311 for the Bank. 9.
    
    CAPITAL STOCK
  SHARES
    
    
    CAPITAL STOCKVotes
    
    
    
    
    
    
    Pendingper
    
    
    Issued and
    
    
    issuance or
    
    
    InClass
    
    Number
    
    
    share
    
    
    outstanding
    
    
    distribution
    
    
    treasury
    
    
    Paid-inRegistered Class A
shares of common
stock
    
    
    11,235,670
    
    
    
    5
    
    
    
    11,236
    
    
    
    
    
    
    
    
    
    
    
    11,236Registered Class B
shares of common
stock (1)
    
    
    672,707,767
    
    
    
    1
    
    
    
    672,707
    
    
    
    
    
    
    
    
    
    
    
    672,707Total 2006
    
    
    683,943,437
    
    
    
    
    
    
    
    683,943
    
    
    
    
    
    
    
    
    
    
    
    683,943Capital stock
increase 
Registered Class B
shares of common
stock (see note
3.5)
    
    
    35,536
    
    
    
    1
    
    
    
    
    
    
    
    36
    
    
    
    
    
    
    
    36Total 2007
    
    
    683,978,973
    
    
    
    
    
    
    
    683,943
    
    
    
    36
    
    
    
    
    
    
    
    683,979Registered Class B
shares of common
stock (see note
3.5)
    
    
    
    
    
    
    1
    
    
    
    36
    
    
    
    (36
    )
    
    
    
    
    
    
    Acquired Registered
Class B shares of
common stock
    
    
    
    
    
    
    1
    
    
    
    (75,542
    )
    
    
    
    
    
    
    75,542
    
    
    
    Total 2008
    
    
    683,978,973
    
    
    
    
    
    
    
    608,437
    
    
    
    
    
    
    
    75,542
    
    
    
    683,979
  F - 39




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 SHARES
    
    
    CAPITAL STOCKVotes
    
    
    
    
    
    
    Pendingper
    
    
    Issued and
    
    
    issuance or
    
    
    InClass
    
    Number
    
    
    share
    
    
    outstanding
    
    
    distribution
    
    
    treasury
    
    
    Paid-inAs of December 31, 2008:Registered Class A
shares of common
stock
    
    
    11,235,670
    
    
    
    5
    
    
    
    11,236
    
    
    
    
    
    
    
    
    
    
    
    11,236Registered Class B
shares of common
stock
    
    
    672,743,303
    
    
    
    1
    
    
    
    597,201
    
    
    
    
    
    
    
    75,542
    
    
    
    672,743Total 2008
    
    
    683,978,973
    
    
    
    
    
    
    
    608,437
    
    
    
    
    
    
    
    75,542
    
    
    
    683,979
 (1)
    
    On September 26, 2005, the Banks General Regular and Special Shareholders Meeting
approved a capital increase of up to a face value of Ps. 75,000,000 (face value:
seventy-five million Argentine pesos), through the issuance of up to 75,000,000 new
common, registered, Class B shares with a face value of Ps. 1, each one entitled to one
vote, and entitled to dividends under the same conditions as common, registered, Class B
shares outstanding upon issuance, to be publicly subscribed in Argentina or abroad. On
January 6, 2006, the Bank submitted to the U.S. Securities and Exchange Commission (SEC)
an application for registration of the abovementioned stock issue. Finally, on March 24,
2006, the Banks stock began to be listed on the New York Stock Exchange. During the year
ended December 31, 2006, such capital increase was fully subscribed and paid in. As
required by CNV General Resolution No. 368/01, the Bank informs that has applied all funds
resulting from the public subscription of shares to finance its general business
operations, increasing its lending capacity and obtain funds for potential acquisitions.      F - 40




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  10. CORPORATE BONDS ISSUANCE
  CORPORATE BONDSRemaining ofOriginal face
    
    
    
    
    face value as of
    
    
    As of December, 31Class
    
    value
    
    
    
    
    12/31/2008
    
    
    2008
    
    
    2007Subordinated
    
    USD 83,000,000
    
    a.1) and a.2)
    
    
    
    
    
    
    
    
    
    
    13,878Subordinated
    
    USD 4,000,000
    
    b)
    
    USD      800,000
    
    
    1,802
    
    
    
    2,503Subordinated  Class 1
    
    USD 150,000,000
    
    c.1)
    
    USD 150,000,000
    
    
    519,879
    
    
    
    474,314Non-subordinated  Class 2
    
    USD 150,000,000
    
    c.2)
    
    USD 117,275,000
    
    
    419,378
    
    
    
    489,390Non-subordinated  Class 3
    
    USD 100,000,000
    
    c.3)
    
    USD 98,500,000
    
    
    305,495
    
    
    
    310,147Total
    
    
    
    
    
    
    
    
    
    
    
    
    1,246,554
    
    
    
    1,290,232
  Fiscal Year
    
    Amounts2009
    
    
    19,2582010
    
    
    8862012
    
    
    303,3212017
    
    
    405,0342036
    
    
    518,055Total
    
    
    1,246,554
 a.1)
    
    On February 19, 1996, the Banks General Regular and Special Shareholders Meeting
authorized issuing Subordinated Corporate Bonds for up to a face value of USD 60,000,000,
which was carried out on May 31, 1996.The net funds arising from the placement of the abovementioned corporate bonds were used to
repay the loan borrowed from the FFCB (Bank Capitalization Trust Fund), currently the FFRE
(Business Enterprise Reconstruction Trust Fund), due to the acquisition of certain assets
and liabilities of Banco Federal Argentino.On April 16, 2003, the Bank paid the last installment of the Subordinated Corporate Bond,
pursuant to the payment schedule established.a.2)
    
    On April 12, 1995, the Banks General Regular Shareholders Meeting approved creating
a Global Program for the issuance of simple and unsecured Corporate Bonds, subordinated or
not, nonconvertible into shares for up to an aggregate of USD 50,000,000, and it entrusted
the Board of Directors with the task of setting the characteristics of the referred bonds
(price, form, payment and placement conditions, among others).On July 20, 1998, the Bank received funds from a loan requested from FFCB for an amount of
USD 5,000,000, whereby the Bank issued subordinated corporate bonds to finance the purchase
of former Banco de Jujuy S.A.On July 20, 2005, the Bank paid the last installment of the Subordinated Corporate Bond,
pursuant to the payment schedule established.
  F - 41




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
        b)
    
    On January 20, 1997, the General Special Shareholders Meeting of former Banco de
Salta S.A. (which was absorbed by the Bank) approved issuing Subordinated Corporate Bonds
in the amount of USD 4,000,000 to exercise the power granted to it by the second clause of
the Loan Agreement entered into with Banco Provincial de Salta (in liquidation) on June
28, 1996. In addition, the General Special Shareholders Meeting of former Banco de Salta
S.A. held on May 29, 1997, approved the IPO of such Corporate Bonds. Through Resolution
No. 1,006, dated December 19, 1997, the CNV authorized the IPO of former Banco de Salta
S.A. for the issuance of Corporate Bonds, and it also approved the public offering of such
bonds.
   c)
    
    On September 1, 2006, the General Regular Shareholders Meeting approved the creation
of a Global Program for the Issuance of simple Corporate Bonds in a short, medium or long
term, either subordinated or non-subordinated, with or without guarantee, in accordance
with the provisions of Law No. 23,576, as amended by Law No. 23,962, and further
applicable regulations, up to a maximum amount outstanding at any time during the term of
the program of USD 400,000,000 (four hundred million US dollars), or an equal amount in
other currencies, under which it will be possible to issue different classes and/or series
of corporate bonds denominated in US dollars or other currencies and reissue the
successive classes or series to be amortized.
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BANCO MACRO S.A. AND SUBSIDIARIES
 c.1)
    
    On December 18, 2006, under the abovementioned Global Program, Banco Macro S.A.
issued the 1st series of Class 1 subordinated notes for a face value of USD
150,000,000 (US dollars one hundred and fifty million). The main characteristics of
this issuance are:
 
    
    Computable to the Banks required minimum capital (computable equity), as
established by Communiqué A 4,576.
    
    The notes fall due within a 30-year term, with full amortization upon maturity
(December 18, 2036), with a full redemption option in 10 years as from the
issuance date.
    
    Interest payments will be made with a semiannual frequency (June 18 and
December 18, every year).
    
    During the first 10 years, the interest rate will be a fixed one (9.75%), and a
variable one for the remaining years (six-month LIBOR, plus 7.11%). As established
by Communiqué A 4,576 the interest rate payable can be increased only once over
the life of the instrument and subsequent to the 10-year term as from their
issuance.
    
    They do not include covenants that change the subordination order.
    
    No interest on the notes will be neither fall due and payable if: (a) payments
of such interest exceed the distributable amount, as defined in the pricing
supplement dated November 23, 2006; (b) there is a general prohibition by the
Central Bank; (c) the Bank is subject to the provisions of sections 34 or 35 bis,
Financial Institutions Law; (d) the Bank is receiving financial assistance from
the Central Bank under Article 17 of Central Bank Charter; (e) the Bank is not in
compliance with or have failed to comply in a timely basis with reporting
obligations to the Central Bank; and/or (f) the Bank is not in compliance with
minimum capital requirements (both on an individual and consolidated basis) or
with minimum cash reserves (on average).
    
    The unpaid interest is not cumulative.
    
    They have authorizations both for their public offering and their listing on
domestic or foreign stock exchanges or markets.
    
    In no case, may the payment of interests exceed net unappropriated retained
earnings (calculated under Communiqué A 4,591) which should be appropriated to a
reserve created to such end, as established by Communiqué A 4,576. On April 29,
2008, the General Regular Shareholders Meeting approved the creation of the
special reserve to service interest payable during the fiscal year 2008. As of
December 31, 2008, such reserve was fully reversed.
 The Bank used the funds derived from such issuance to grant loans.c.2)
    
    On January 29, 2007, the Bank issued the 1st series of Class 2 nonsubordinated
corporate bonds at a fixed rate of 8.5% p.a., simple, not convertible into shares,
fully amortizable upon maturity (February 1, 2017), for a face value of USD 150,000,000
(one hundred and fifty million US dollars), under the terms and conditions set forth in
the price supplement dated January 10, 2007. Interest will be paid semiannually on
February 1 and August 1 of every year, starting on August 1, 2007. Additionally, the
Bank has the option to redeem such issuance, either fully or partially, at any time and
periodically. The Bank used the funds derived from such issuance to grant loans.c.3)
    
    On June 7, 2007, the Bank issued the 1st series of Class 3 nonsubordinated
corporate bonds (peso-linked notes) at a fixed rate over principal in pesos of 10.75%
p.a., simple, not convertible into shares, fully amortizable upon maturity (June 7,
2012), for a face value of USD 100,000,000 (one hundred million US dollars), under the
terms and conditions set forth in the price supplement dated May 18, 2007. Interest
will be paid semiannually on June 7 and December 7 of every year, starting on December
7, 2007. Additionally, the Bank will only be able to redeem such issuance for tax
purposes. The Bank used the funds derived from such issuance to grant loans.
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BANCO MACRO S.A. AND SUBSIDIARIES
    11.
    
    ITEMS IN CUSTODY
 11.1.
    
    Portfolio Management
 a)
    
    On March 1, 1996, former Banco de Salta S.A. (which was absorbed by the
Bank) and the Government of the Province of Salta entered into an Agreement to
Manage the Loan Portfolio of Banco Provincial de Salta (in liquidation) related to
the nonfinancial private sector, whereby the Bank undertakes to perform all acts
necessary to manage such portfolio. In consideration thereof, the Province of Salta
recognizes to the Bank a percentage of the amounts effectively recovered.As of December 31, 2008 and 2007, the loans portfolio managed for principal and
interest, after application adjustments, amounted to 14,434 and 14,664, respectively.
 b)
    
    By virtue of the agreement formalized on August 11, 1998, between former
Banco de Jujuy S.A. (which was absorbed by the Bank) and the Government of the
Province of Jujuy, the Bank undertakes to perform all acts necessary to manage the
loan portfolio of the former Banco de la Provincia de Jujuy and to provide a monthly
report on the tasks performed. In consideration thereof, the Province of Jujuy
recognizes to the Bank, for all accounts and as a lump-sum and total consideration, a
percentage of the amounts actually recovered.As of December 31, 2008 and 2007, the loans portfolio managed amounts to 43,388 and
44,068, respectively.
 c)
    
    On April 6, 2001, through Provincial Decree No. 806, the Ministry of the
Treasury of the Province of Salta approved an extension to the Contract for the
service of collecting, processing and arranging information, managing the loan
portfolio and performing collection procedures related to the receivables of the
IPDUV (Provincial Institute of Urban and Housing Development) entered into on March
27, 2001, between such agency and the former Banco Macro S.A.. Through that
extension, the Bank will provide to the IPDUV, among others, the service of
collecting the installments payable by successful bidders for housing and a service
of performing collection procedures related to such institutes receivables. In
consideration thereof, the IPDUV recognizes to the Bank a percentage of the amounts
effectively recovered.As of December 31, 2008 and 2007, the loans portfolio managed amounts to 84,508 and
80,890, respectively.
 d)
    
    On August 19, 2002, ABN AMRO Bank N.V. Sucursal Argentina, as trustee, the
former Scotiabank Quilmes S.A., as trustor, Banco Comafi S.A., as collecting agent
and manager and the former Banco Bansud S.A. (currently Banco Macro S.A.), entered
into an agreement for the LAVERC financial trusts collection administration and
management, whereby former Banco Bansud S.A. will be in charge of the collection
management, custody, performance and any other task related to the corpus assets
recorded in the branches of former Scotiabank Quilmes S.A. received.
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BANCO MACRO S.A. AND SUBSIDIARIES
 Through Resolution No. 523 of August 20, 2002, the Central Bank Board of Governors
under Section No. 35 bis II b), Financial Institutions Law provided for excluding
certain secured liabilities and the equivalent amount of certain assets from Scotiabank
Quilmes S.A. (SBQ), and it authorized the transfer of 35% of total excluded assets
(including certificates of participation in the LAVERC trust) and liabilities in favor
of the former Banco Bansud S.A. In addition, the abovementioned Resolution authorized
the former Banco Bansud S.A. to incorporate 36 branches that belonged to SBQ at the
time of the transfer.As of December 31, 2008 and 2007, the portfolio managed by the Bank amounted to 124,982
and 136,810, respectively.e)
    
    On June 30, 2006, the Bank entered into a management and custody agreement
regarding the RETUC 1 trust loan portfolio.As of December 31, 2008 and 2007, the portfolio managed by the Bank for principal and
accrued interest amounted to 62,397 and 63,037, respectively. See also note 13.2.f)
    
    On December 31, 2008, the Bank entered into a management and custody
agreement regarding the BATUC I trust loan portfolio.As of December 31, 2008, the portfolio managed by the Bank for principal and accrued
interest amounted to 18,455. See also note 13.2.g)
    
    As of December 31, 2007 the Bank managed the loan portfolio assigned as
part of the transfer process of Banco San Miguel de Tucumán S.A. for a total of
13,427. The management agreement for the residual portfolio of former Banco San
Miguel de Tucumán S.A. executed by Banco del Tucumán S.A. and the Municipality of San
Miguel de Tucumán was terminated on July 8, 2008, sending notice thereof to the
Central Bank on October 17, 2008, under file No. 054908.h)
    
    In addition, as of December 31, 2008 and 2007, the Bank had under its
management other portfolios for total amounts of 72,260 and 72,061, respectively.
 11.2.
    
    Mutual FundsAs of December 31, 2008, the Bank, in its capacity as Depository Company, held in custody
the shares of interest subscribed by third parties and securities from the following
mutual funds (FCI):
 Shareholders
    
    
    InvestmentsFund
    
    Shares of interest
    
    
    equity
    
    
    (a)Pionero Pesos
    
    
    567,743,811
    
    
    
    726,187
    
    
    
    397,587Pionero Renta Ahorro
    
    
    22,503,675
    
    
    
    29,105
    
    
    
    27,882Pionero Latam
    
    
    1,615,657
    
    
    
    3,096
    
    
    
    3,110Pionero FF  Fideicomiso Financieros
    
    
    12,204,056
    
    
    
    14,030
    
    
    
    13,718Pionero Renta
    
    
    4,108,716
    
    
    
    5,816
    
    
    
    5,168Pionero Acciones
    
    
    1,292,580
    
    
    
    1,586
    
    
    
    1,574Pionero Global
    
    
    845,139
    
    
    
    816
    
    
    
    799Galileo Event Driven F.C.I.
    
    
    4,420,444
    
    
    
    21,681
    
    
    
    20,351Galileo Argentina F.C.I.
    
    
    2,816,202
    
    
    
    9,726
    
    
    
    8,549
 (a)
    
    Memorandum accounts  Debit-balance accounts  Control  Other includes mainly
items in custody. Consequently, this account includes the above mentioned amounts related
to the mutual funds investment portfolios. 12.
    
    BANK DEPOSITS GUARANTEE INSURANCE SYSTEM
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BANCO MACRO S.A. AND SUBSIDIARIES
  13.
    
    TRUST AGREEMENTS
  13.1.
    
    Interest in trusts for investment purposes.
  Financial trust
    
    12/31/2008
    
    
    12/31/2007Certificates of participation:Tucumán (a)
    
    
    35,164
    
    
    
    134,474TST & AF (b)
    
    
    33,148
    
    
    
    33,611Godoy Cruz (c)
    
    
    14,642
    
    
    
    12,511Gas Tucumán I (d)
    
    
    12,191
    
    
    
    3,591Luján (e)
    
    
    
    
    
    
    43,530San Isidro (f)
    
    
    
    
    
    
    16,782Other
    
    
    18,771
    
    
    
    23,646Subtotal certificates of participation
    
    
    113,916
    
    
    
    268,145Debt securities:San Isidro (f)
    
    
    41,766
    
    
    
    Sociedad Militar Seguro de Vida (g)
    
    
    41,762
    
    
    
    Consubond (g)
    
    
    33,510
    
    
    
    Consubono (g)
    
    
    21,677
    
    
    
    Tarjeta Shopping (g)
    
    
    12,244
    
    
    
    29,989Megabono (g)
    
    
    11,287
    
    
    
    Secubono (g)
    
    
    10,617
    
    
    
    4,055Metroshop (g)
    
    
    9,995
    
    
    
    12,425Garbarino (g)
    
    
    7,849
    
    
    
    Confibono (g)
    
    
    6,886
    
    
    
    Onext (h)
    
    
    
    
    
    
    14,524Others
    
    
    29,554
    
    
    
    16,037Subtotal debt securities
    
    
    227,147
    
    
    
    77,030Total interest in trusts (1)
    
    
    341,063
    
    
    
    345,175
 (1)
    
    See also note 24.(a)
    
    Tucumán TrustOn August 31, 2005, Federalia Sociedad Anónima de Finanzas, Maxifarm S.A. and
Gabrinel S.A., in their capacity as trustors, entered into a trust agreement that
created the financial trust Fideicomiso Financiero Tucumán. The trustors assigned
to the trust debt securities issued by the trust Fideicomiso República, the purpose
of which is the recoverability of certain assets, mainly loans and real property of
former Banco República.  F - 46




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BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31, 2007, Banco Macro S.A. owned 100% of the Class A certificates of
participation issued by the trust Fideicomiso Tucumán.On June 6, 2008, partial settlements were made and part of the certificates was sold
among the trust participants. Consequently, since that date, Banco Macro S.A. owns
100% of the trust certificates.As per the latest accounting information available to date, corpus assets amounted to
about 45,621.This trust will end with the full settlement of the certificates of participation.(b)
    
    TST & AF TrustOn November 29, 2005, an agreement was executed to replace the trustee of Fideicomiso
Financiero TST & AF between Austral Financial LLC (formerly known as Tishman Speyer
 Citigroup Alternative Investments and Austral Financial LLC), in its capacity as
trustor, First Trust of New York, National Association, permanent representation
office in Argentina, in its capacity as trustee, Sud Inversiones y Análisis S.A., in
its capacity as substitute trustee, and Austral Financial LLC, Proa del Puerto S.A.
and Macro Bank Limited (subsidiary of Banco Macro S.A.), in their capacity as
beneficiaries, whereby the beneficiaries ratify the acceptance of the trustees
resignation and appoint Sud Inversiones y Análisis S.A. as substitute trustee of the
trust.The purpose of the trust is to develop a real estate project in Puerto Madero and the
subsequent sale thereof to settle the certificates of participation.As of the date of issuance these financial statements, Banco Macro S.A. is
beneficiary of 33% of the Class A certificates of participation, issued by
Fideicomiso TST & AF.As per the latest accounting information available to date, corpus assets amounted to
about 199,549.This trust will terminate 30 years after the execution and/or full payment, sale or
any other disposition related to the project in full.(c)
    
    Godoy Cruz TrustOn August 29, 2006, Banco Finansur S.A., as trustee, and Corporación de los Andes
S.A., as trustor, entered into an agreement to create the trust called Fideicomiso
Financiero Godoy Cruz.The trustor assigned to the trust Fideicomiso Godoy Cruz buildings and plots of
land located in the Godoy Cruz department, San Francisco del Monte district, Province
of Mendoza.In addition, Class A, Class B (subordinated to the Class A certificates of
participation) and Class C (subordinated to Class A and Class B) certificates
of participation were issued.The purpose of the trust is to sell the assets mentioned above and to use the
proceeds to settle the certificates of participation issued.As of the date of these financial statements, Banco Macro S.A. is beneficiary of 100%
of the Class A certificates of participation.As per the latest accounting information available to date, corpus assets amounted to
about 22,528.This trust will end with the full settlement of the certificates of participation.  F - 47




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BANCO MACRO S.A. AND SUBSIDIARIES
 (d)
    
    Gas Tucumán I TrustOn July 31, 2006, Sud Inversiones & Análisis S.A., as Trustee, and Gasnor S.A., as
Trustor, entered into a trust agreement called Fideicomiso Financiero Gas Tucumán
I. The purpose of this trust is to manage the corpus assets, made up mainly of
receivables accrued against customers who joined the plan related to the construction
of the natural gas distribution network for new clients in the city of San Miguel de
Tucumán, to settle the certificates to be issued.In addition, Banco Macro S.A. granted a loan to Gasnor S.A. to finance the
abovementioned construction works. Such loan provides that Gasnor S.A. may settle its
payable by delivering such certificates of deposit to Banco Macro S.A.As of the date of issuance of these financial statements, certificates of
participation were issued for a face value amount of 14,941, which were assigned to
Banco Macro S.A., the residual value of which amounted to 9,236.According to the accounting information available as of the date of issuance of these
financial statements, the corpus assets totaled 14,798.This trust will end with the full settlement of the certificates of participation.(e)
    
    Luján TrustThe financial trust Fideicomiso Financiero Luján was created to reduce the credit
risk of the financing granted to Federalia S.A. de Finanzas. To such end, on May 20,
2003, Federalia S.A. de Finanzas, in its capacity as trustor, entered into an
agreement to create the trust called Fideicomiso Financiero Luján.The trustors assigned to the trust real property located in the Province of Buenos
Aires, Argentina.Furthermore, Nuevo A, A Prima (subordinated to the Class Nuevo A certificates
of participation) and Class B certificates of participation (subordinated to the
Class A and A Prima certificates of participation) were issued. As of December
31, 2007, Banco Macro S.A. was the beneficiary of 100% of the certificates of
participation issued.As of June 6, 2008, Banco Macro S.A. sold on credit 100% of the certificates of
participation with their guaranty to Federalia S.A. de Finanzas.(f)
    
    San Isidro TrustOn June 4, 2001, Fideicomiso San Isidro was created, the purpose of which was to
sell the real property received in trust and to use the proceeds to settle the
certificates issued by the trust.The certificates of participation were delivered to Banco Macro S.A. to settle a loan
granted previously to República S.A. de Finanzas.On May 10, 2007, a real estate development agreement was signed to carry out a real
estate project.On November 7, 2008, the Bank proceeded to sell on credit all of the certificates of
participation with their guaranty issued by the trust to an unrelated company.Subsequently, on December 26, 2008, the Bank subscribed debt securities in US dollars
for face value amount totaling USD 11,687,366 issued by the trust.According to the accounting information available as of the date of issuance of these
financial statements, the corpus assets totaled around 102.544.  F - 48




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BANCO MACRO S.A. AND SUBSIDIARIES
 (g)
    
    Mainly including provisional certificates of participation and debt
securities issued in the different series of financial trusts through a public
offering entered into by the Bank under underwriting agreements. Through those
agreements, the Bank prepays the price for the placement of provisional securities to
the trustor. Once final certificates and debt securities are issued and placed in the
market, the Bank recovers the reimbursements plus the amount equal to the rate agreed
upon.(h)
    
    Onext TrustThe purpose of the trust Fideicomiso Onext was to guarantee the repayment of the
financing granted by the Bank and Banco Credicoop Cooperativo Limitado to Dalvian
House S.A., Conjunto los Cerros S.A. and Dalvian Constructora S.A. through the
purchase of debt securities issued by such trust.Consequently, on May 19, 2005, Dalvian House S.A. and Conjunto los Cerros S.A., in
their capacity as trustors, entered into an agreement whereby the financial trust
Fideicomiso Financiero Onext was created.The trustors assigned certain real property to the trust Fideicomiso Onext. The
purpose of such trust was to sell the real property to settle the debt securities
issued by the trust and distribute the remaining corpus assets, if any, among the
holders of the certificates of participation in their respective proportions.As of December 31, 2007, Banco Macro S.A. was beneficiary of 50% of the debt
securities issued under Fideicomiso Onext.On July 16, 2008, an agreement was signed to liquidate and terminate the trust, with
the related distribution of corpus assets. In addition, within the framework of the reorganization process of former Banco Bisel
S.A., as established by section 35 bis, Law No. 21,526, on May 21, 2002, Fideicomiso
Bisel was created with assets transferred by former Banco Bisel S.A., being Banco de la
Nación Argentina appointed as trustee (replaced by Sud Inversiones y Análisis S.A. as
from May 20, 2008). The purpose of the trust is to realize the managed assets and settle
the certificates of participation issued.As of December 31, 2008 and 2007, Banco Macro S.A., through its subsidiary Nuevo Banco
Bisel S.A., owns 100% of the certificates issued by the trust. As of December 31, 2008
and 2007, the amounts receivable recorded were fully provisioned, since they were deemed
unrecoverable.13.2.
    
    Trusts created using financial assets transferred by the BankThe Bank transferred financial assets (loans) to trusts for the purpose of issuing and
selling securities the collection of which is guaranteed by the cash flow resulting from
such assets or group of assets. This way the funds originally used to finance loans are
recovered early, increasing the Banks lending capacity.As of December 31, 2008 and 2007, the trust assets represent about 4,296 and 2,300,
respectively.13.3.
    
    Trusts as collateral for the loans granted by the BankAs it is common in the Argentine banking market, the Bank requires, in some cases, that
the debtors present certain assets or entitlements to receiving assets in a trust as a
guarantee for the loans granted. This way, the risk of losses is minimized and access to
the security is guaranteed in case of the debtors noncompliance.Trusts usually act as conduits to collect cash from the debtors flow of operations and
send it to the bank for the payment of the debtors loans and thus ensure compliance with
the obligations assumed by the trustor and guaranteed through the trust.
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BANCO MACRO S.A. AND SUBSIDIARIES
 Under this kind of trust, the Bank grants loans to trustors and creates a trust, where the
trustor transfers an asset or right it owns to ensure compliance with the loan received.Additionally, other guarantee trusts manage specific assets, mainly real property.Provided there is no noncompliance or delays by debtor in the obligations assumed with the
beneficiary, the Trustee shall not execute the guaranty and all excess amounts as to the
value of the obligations are reimbursed by the Trustee to the debtor, and also the Bank
will never have responsibility for additional losses other than the balance of the loans.
As of December 31, 2008, all loans are performing.As of December 31, 2008 and 2007, the trusts managed amount to 289,920 and 54,199,
respectively.13.4.
    
    Normal trust activities (The Bank acts as trustee)The Bank performs management duties in relation to the corpus assets according to the
agreements and only performs trustee duties and has no other interests in the trust.In no case shall the Trustee be liable with its own assets or for any obligation deriving
from the performance as trustee. Such obligations do not imply any type of indebtedness or
commitment for the trustee and they will be fulfilled only through trust assets. In
addition, the trustee will not encumber the corpus assets or dispose of them beyond the
limits established in the related trust agreements. The commissions earned by the Bank due
to its performance as trust agent are calculated under the terms and conditions of the
related agreements.The trusts usually manage funds derived from the activities performed by trustors. On the
last day of each month, the assets of the Trust are not material because they are
transferred periodically for the trustee (the Bank) to the beneficiary, in accordance to
the trust agreements. To such end, the Bank entered into administration trust agreements
for the following main purposes:
 (a)
    
    Managing the trusts corpus assets to guarantee in favor of the beneficiary
the existence of the resources required to finance and/or pay certain obligations,
such as the payment of amortization installments regarding work or service
certificates, and the payment of invoices and fees stipulated in the related
agreements.(b)
    
    Promoting the production development of the private economic sector at a
provincial level.(c)
    
    In connection with public work concession agreement granting road
exploitation, management, keeping and maintenance.
   14.
    
    COMPLIANCE WITH REQUIREMENTS TO ACT AS OVER-THE-COUNTER SECURITIES MARKET BROKER
  15.
    
    RESTRICTION ON EARNINGS DISTRIBUTION
 a)
    
    According to Central Bank provisions, 20% of income for the year should be
appropriated to Legal Reserve. Consequently, the Shareholders Meeting held on May 12,
2009, decided to apply 132,010 out of unappropriated retained earnings to increase such
legal reserve.
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BANCO MACRO S.A. AND SUBSIDIARIES
 b)
    
    As established in the issuance conditions for the 1st series of Class 1 Corporate
Bonds mentioned in note 10.c.1), and as established by Central Bank Communiqué A 4,576,
the Shareholders Meeting held on May 12, 2009, decided to appropriate 50,510 out of
unappropriated retained earnings to set a special reserve for interest to be paid upon the
maturities taking place in June and December 2009.
 c)
    
    Additionally, through Communiqué A 4589, as supplemented, the Central Bank
established the procedure that should be followed by the financial institutions in the
distribution of earnings. In this regard, the banks that will be distributing earnings
will have to request express authorization from the Central Bank and show compliance with
the requirements established in the abovementioned communiqués regarding information for
the month prior to the date on which the request is made. Consequently, to distribute
earnings the following items must be deducted from unappropriated retained earnings as of
year-end:
 
    
    Capitalized amounts for differences resulting from compliance with court orders
related to the dedollarization of deposits and differences resulting from dollarization
of court deposits, mentioned in notes 4.4.l.2) and 4.4.l.3) for 25,447 (net of
amortizations), (Banco Macro S.A. stand  alone basis).
    
    The positive difference between the book value and the market value of government
securities and guaranteed loans in portfolio amounting to 342,252 (Banco Macro S.A.
stand  alone basis).
   d)
    
    According to Law No. 25,063, the dividends distributed in cash or in kind will be
subject to a 35% income tax withholding as a single and final payment. Dividend payments
are subject to such withholding if they exceed the sum of: (i) the accumulated taxable
earnings accumulated as of the year-end immediately prior to the payment or distribution
date net of the income tax paid for the fiscal years which income is being distributed and
(ii) certain tax-exempt income (such as dividend payments from other corporations). This
is applicable for tax years ended as from December 31, 1998.e)
    
    On June 16, 2006, the Bank and Crédit Suisse First Boston International entered into
a loan agreement for USD 50,000,000, maturing on January 21, 2008, at LIBOR plus 1.95%.
Such agreement includes restrictions mainly related to the compliance with the payments
established. In the event of noncompliance with the agreement, the Bank will be unable to
distribute dividends either directly or indirectly through its subsidiaries. On January
18, 2008, an addendum was signed changing the expiration date to January 21, 2010, and
establishing a nominal interest rate of 8.55% p.a.
   16.
    
    CLAIMS FROM THE A.F.I.P. (FEDERAL PUBLIC REVENUE AGENCY)  D.G.I. (FEDERAL TAX BUREAU) 
D.G.R. C.A.B.A. (BUENOS AIRES CITY TAX AUTHORITIES)
 a)
    
    On January 21, 2002, the former Banco Bansud S.A. requested from the A.F.I.P. that it
be included in the debt consolidation, interest and fines exemption and installment plan
system provided by Presidential Decree No. 1,384/01 in order to settle the tax payable
that authorities had assessed ex-officio according to a resolution notified on December
19, 2001.
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BANCO MACRO S.A. AND SUBSIDIARIES
   b)
    
    The former Banco Bansud S.A., on February 18 and November 12, 2002, and the Bank, on
February 3, 2004, February 17, 2005, and February 17, 2006, filed appeals with the Federal
Administrative Tax Court against the AFIP  DGI resolutions that, holding to the position
mentioned in the preceding point, had objected the tax returns filed by the former Banco
Bansud S.A. for tax years ended from June 30, 1995, through June 30, 1999, and the
six-month irregular period ended December 31, 1999.
   c)
    
    The D.G.R.C.A.B.A. attributed turnover tax differences to Banco Macro S.A. for tax
period 2002, in relation to the treatment of foreign exchange differences and the
compensation bond. On April 22, 2008, the Bank filed a request for reconsideration.
Subsequently, on September 11, 2008, the D.G.R.C.A.B.A. partly admitted the request,
reducing its tax claim. However, on October 2, 2008, the Bank filed an administrative
appeal, that was dismissed. On December 29, 2008, the Bank filed a complaint challenging
this with the Federal Administrative Tax Court in and for the City of Buenos Aires. It
also requested that the precautionary measure established in section 189, Administrative
Tax Code, be ordered, which involves the stay of execution of the administrative act that
was challenged in the abovementioned complaint.
 d)
    
    On April 24, 2009, the Bank filed appeals with the Federal Administrative Tax Court
against the AFIP  DGI resolution that had objected 2002, 2003 and 2004 tax returns and
2003 and 2004 Income Tax Minimum Presume filed by Banco Macro S.A. for these tax years.
   17.
    
    ACCOUNTS IDENTIFYING COMPLIANCE OF THE MINIMUM CASH REQUIREMENT
  Banco Macro S.A.
    
    
    Nuevo Banco Bisel
    
    
    Banco delItem
    
    (stand-alone basis)
    
    
    S.A.
    
    
    Tucumán S.A.CashCash on hand
    
    
    741,774
    
    
    
    182,120
    
    
    
    83,951Amounts in Central Bank accounts
    
    
    1,676,844
    
    
    
    166,341
    
    
    
    215,872Other receivables from financial intermediationSpecial guarantee accounts with the Central Bank
    
    
    140,812
    
    
    
    43,435
    
    
    
    24,235Total
    
    
    2,559,430
    
    
    
    391,896
    
    
    
    324,058
  F - 52




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 18.
    
    RISK MANAGEMENT POLICIES
      Credit risk
          F - 53




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Operational risk
     Market and Liquidity Risk
         F - 54




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
    1.
    
    Business Plan. This is the starting point to determine the cash needs of the current
year.
 2.
    
    Liquidity Test. This is used to define the amount of funding required in a
predetermined series of future dates assuming normal market circumstances and without any
significant changes in the business.
 3.
    
    Stress Tests. Used to quantify the impact of individual or systemic illiquidity
scenarios.
 4.
    
    Mismatch control. The Committee defines the amount of the accumulated mismatch that
is acceptable for each one of the tranches or gaps in the liquidity test, both in the
normal and stress scenarios.
 5.
    
    Assets and Liabilities Assumptions. In the process of constructing the liquidity
mismatches, whether in normal market or stress situations, assumptions are to be included
for the assets and liabilities of the balance sheet, taking into account the stability,
diversification, and historical renovation percentages.
    19.
    
    BALANCES IN FOREIGN CURRENCY
  As of December 31,2008
    
    
    2007ASSETSCash
    
    
    1,289,351
    
    
    
    1,001,459Government and private securities
    
    
    510,061
    
    
    
    288,364Loans
    
    
    2,128,481
    
    
    
    1,598,906Other receivables from financial intermediation
    
    
    413,169
    
    
    
    236,249Assets under Financial Lease
    
    
    69,188
    
    
    
    20,343Investments in other companies
    
    
    500
    
    
    
    1,337Other receivables
    
    
    57,613
    
    
    
    22,641Items pending allocation
    
    
    803
    
    
    
    52Total
    
    
    4,469,166
    
    
    
    3,169,351
  F - 55




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31,2008
    
    
    2007LIABILITIESDeposits
    
    
    2,521,198
    
    
    
    2,119,235Other liabilities from financial intermediation
    
    
    901,277
    
    
    
    984,008Other Liabilities
    
    
    8,360
    
    
    
    7,289Subordinated Corporate Bonds
    
    
    519,879
    
    
    
    488,192Items pending allocation
    
    
    3
    
    
    
    28Total
    
    
    3,950,717
    
    
    
    3,598,752
 20.
    
    INTEREST-BEARING DEPOSITS WITH OTHER BANKS
 20.1.
    
    Included in Cash there are: (a) interest-bearing deposits with the Central Bank
totaling 2,059,041 and 2,022,430 as of December 31, 2008 and December 31, 2007,
respectively and (b) interest-bearing deposits in foreign banks totaling 128,002 and
224,179 as of December 31, 2008 and 2007, respectively.
 The interest-bearing deposits with the Central Bank yielded a nominal annual interest rate
of 1.37% and 2.55% as of December 31, 2008 and December 31, 2007, respectively and the
interest-bearing deposits in foreign banks yielded a nominal annual interest rate of
approximately 1.71% and 2.86% as of December 31, 2008 and 2007, respectively.
 20.2.
    
    Included in Other Receivables from Financial Transactions there are other
interest-bearing deposits with Central Bank totaling 208,482 and 180,686 as of December
31, 2008 and 2007, respectively.
 21.
    
    GOVERNMENT AND PRIVATE SECURITIES
 As of December 31,2008
    
    
    2007GOVERNMENT SECURITIESHoldings in Special Investment AccountsIn pesos:Consolidation bonds of social security payable in pesos at 2%  maturity 2010 and 2014
    
    
    83,847
    
    
    
    Secured bonds Decree 1,579/02 at 2%  maturity 2018
    
    
    23,769
    
    
    
    Discount bonds denominated in pesos at 5.83%  maturity 2033
    
    
    22,201
    
    
    
    Consolidation bonds in pesos at 2%  Sixth series  maturity 2024
    
    
    4,122
    
    
    
    Federal government bonds at 2%  maturity 2014
    
    
    3,582
    
    
    
    Subtotal holdings in Special Investment Accounts  In pesos
    
    
    137,521
    
    
    
    In foreign currency:Federal government bonds in USD at Libor  maturity 2012 and 2013
    
    
    236,110
    
    
    
    Argentine government bonds in USD at 7%  maturity 2015
    
    
    49,590
    
    
    
    Argentine government bonds in USD at 7%  maturity 2017
    
    
    23,252
    
    
    
    Par bonds denominated in USD at variable rate  maturity 2038 (governed by Argentine legislation)
    
    
    1,450
    
    
    
    Par bonds denominated in USD at variable rate  maturity 2038 (governed by New York State
legislation)
    
    
    382
    
    
    
    Subtotal holdings in Special Investment Accounts  In foreign currency
    
    
    310,784
    
    
    
    Subtotal holding in Special Investment Accounts
    
    
    448,305
    
    
    
    
  F - 56




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31,2008
    
    
    2007GOVERNMENT SECURITIES (cont.)Holdings for trading or intermediationIn pesos:Discount bonds denominated in pesos at 5.83%  maturity 2033
    
    
    209,277
    
    
    
    18,746Consolidation bonds at 2%  maturity 2010 and 2016
    
    
    8,479
    
    
    
    10,236Consolidation bonds of social security payables in pesos at 2%  maturity 2010 and 2014
    
    
    3,604
    
    
    
    70,670Secured bonds Decree 1,579/02 at 2%  maturity 2018
    
    
    652
    
    
    
    38,299Par bonds at variable rate  maturity 2038
    
    
    181
    
    
    
    1,590GDP-Related Securities  maturity 2035
    
    
    96
    
    
    
    1,109Federal government bonds at 2%  maturity 2007, 2008, 2013 and 2014
    
    
    
    
    
    
    13,840Province of Tucumán bonds at 2%  maturity 2018
    
    
    
    
    
    
    2,828Other
    
    
    82
    
    
    
    197Subtotal holdings for trading or intermediation  In pesos
    
    
    222,371
    
    
    
    157,515In foreign currency:Federal government bonds in USD at Libor  maturity 2012 and 2013
    
    
    98,719
    
    
    
    145,269Discount Bonds in USD at 8.28%  maturity 2033 (governed by New York State legislation)
    
    
    9,975
    
    
    
    Argentine government bonds in USD at 7%  maturity 2015
    
    
    9,627
    
    
    
    Argentine government bonds in USD at 7%  maturity 2017
    
    
    1,633
    
    
    
    45,954Argentine government bonds in USD at 7%  maturity 2011
    
    
    1,565
    
    
    
    1,462Par bonds denominated in USD at variable rate  maturity 2038 (governed by Argentine legislation)
    
    
    255
    
    
    
    368Discount Bonds in USD at 8.28%  maturity 2033 (governed by Argentine legislation)
    
    
    161
    
    
    
    Province of Mendoza bonds in USD at 5.50%  maturity 2018
    
    
    
    
    
    
    7,533Other
    
    
    161
    
    
    
    298Subtotal holding for trading or intermediation  In foreign currency
    
    
    122,096
    
    
    
    200,884Subtotal holding for trading or intermediation
    
    
    344,467
    
    
    
    358,399Unlisted government securitiesIn pesos:Argentine government bonds in pesos at Badlar +3.50%- maturity 2013
    
    
    51,864
    
    
    
    Federal government bonds at variable rate  maturity 2013
    
    
    10,385
    
    
    
    11,987Province of Tucuman bonds at 2%  maturity 2018
    
    
    2,290
    
    
    
    Other
    
    
    
    
    
    
    52Subtotal unlisted government securities  In pesos
    
    
    64,539
    
    
    
    12,039In foreign currency:Province of Tucumán bonds in USD at Libor  maturity 2015
    
    
    5,419
    
    
    
    8,112Subtotal unlisted government securities  In foreign currency
    
    
    5,419
    
    
    
    8,112Subtotal unlisted government securities
    
    
    69,958
    
    
    
    20,151Instruments issued by the Central Bank of ArgentinaIn pesos:Unlisted Central Bank notes (NOBAC)
    
    
    2,640,452
    
    
    
    Listed Central Bank notes (NOBAC)
    
    
    772,496
    
    
    
    3,447,947Unlisted Central Bank bills (LEBAC)  under repo transactions
    
    
    425,963
    
    
    
    Listed Central Bank bills (LEBAC)  under repo transactions
    
    
    
    
    
    
    30,299Subtotal instruments issued by Central Bank
    
    
    3,838,911
    
    
    
    3,478,246Total government securities
    
    
    4,701,641
    
    
    
    3,856,796PRIVATE SECURITIESInvestments in listed private securitiesIn pesos:Mutual funds
    
    
    5,544
    
    
    
    11.617Shares
    
    
    378
    
    
    
    2,971Other
    
    
    1
    
    
    
    Subtotal listed private securities  In pesos
    
    
    5,923
    
    
    
    14,588
  F - 57




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31,2008
    
    
    2007PRIVATE SECURITIES (cont.)In foreign currency:Corporate bonds
    
    
    63,629
    
    
    
    23,595Mutual funds
    
    
    8,133
    
    
    
    19,690Commercial Paper
    
    
    
    
    
    
    30,402Shares
    
    
    
    
    
    
    5,681Subtotal listed private securities  In foreign currency
    
    
    71,762
    
    
    
    79,368Total private securities
    
    
    77,685
    
    
    
    93,956Total government and private securities, before allowances
    
    
    4,779,326
    
    
    
    3,950,752Allowances
    
    
    (27
    )
    
    
    (27
    )Total government and private securities
    
    
    4,779,299
    
    
    
    3,950,725
 MaturingAfter 1 year
    
    
    After 5 yearsWithin 1
    
    
    but within 5
    
    
    but within 10
    
    
    After 10year
    
    
    years
    
    
    years
    
    
    years
    
    
    TotalBook valueGOVERNMENT SECURITIESIn pesos:Holding in Special Investment Accounts
    
    
    72,879
    
    
    
    22,744
    
    
    
    17,525
    
    
    
    24,373
    
    
    
    137,521Consolidation bonds of social security payable in pesos at 2%  maturity 2010 and 2014
    
    
    71,481
    
    
    
    11,785
    
    
    
    581
    
    
    
    
    
    
    
    83,847Secured bonds Decree 1,579/02 at 2%  maturity 2018
    
    
    1,398
    
    
    
    8,273
    
    
    
    14,098
    
    
    
    
    
    
    
    23,769Discount bonds denominated in pesos at 5.83%  maturity 2033
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,201
    
    
    
    22,201Consolidation bonds in pesos at 2%  Sixth series  maturity 2024
    
    
    
    
    
    
    
    
    
    
    1,950
    
    
    
    2,172
    
    
    
    4,122Federal government bonds at 2%  maturity 2014
    
    
    
    
    
    
    2,686
    
    
    
    896
    
    
    
    
    
    
    
    3,582In foreign currency:Holding in Special Investment Accounts
    
    
    58,998
    
    
    
    177,112
    
    
    
    72,842
    
    
    
    1,832
    
    
    
    310,784Federal government bonds in USD at Libor  maturity 2012 and 2013
    
    
    58,998
    
    
    
    177,112
    
    
    
    
    
    
    
    
    
    
    
    236,110Argentine government bonds in USD at 7%  maturity 2015
    
    
    
    
    
    
    
    
    
    
    49,590
    
    
    
    
    
    
    
    49,590Argentine government bonds in USD at 7%  maturity 2017
    
    
    
    
    
    
    
    
    
    
    23,252
    
    
    
    
    
    
    
    23,252Par bonds denominated in USD at variable rate  maturity 2038 (governed by Argentine legislation)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,450
    
    
    
    1,450Par bonds denominated in USD at variable rate  maturity 2038 (governed by New York State
legislation)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    382
    
    
    
    382In pesos:Holding for trading or intermediation
    
    
    6,230
    
    
    
    5,623
    
    
    
    931
    
    
    
    209,587
    
    
    
    222,371Discount bonds in pesos at 5.83%  maturity 2033
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    209,277
    
    
    
    209,277Consolidation bonds at 2%  maturity 2010 and 2016
    
    
    3,800
    
    
    
    4,232
    
    
    
    441
    
    
    
    6
    
    
    
    8,479Consolidation bonds of social security payables in pesos at 2%  maturity 2010 and 2014
    
    
    2,337
    
    
    
    1,164
    
    
    
    103
    
    
    
    
    
    
    
    3,604Secured bonds Decree 1.579/02 at 2%  maturity 2018
    
    
    38
    
    
    
    227
    
    
    
    387
    
    
    
    
    
    
    
    652Par bonds at variable rate  maturity 2038
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    181
    
    
    
    181GDP-Related securities  maturity 2035
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    96
    
    
    
    96Other
    
    
    55
    
    
    
    
    
    
    
    
    
    
    
    27
    
    
    
    82
  F - 58




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 MaturingAfter 1 year
    
    
    After 5 yearsWithin 1
    
    
    but within 5
    
    
    but within 10
    
    
    After 10year
    
    
    years
    
    
    years
    
    
    years
    
    
    TotalBook valueIn foreign currency:Holdings for trading or intermediation
    
    
    24,572
    
    
    
    75,719
    
    
    
    11,260
    
    
    
    10,545
    
    
    
    122,096Federal government bonds in USD at Libor maturity 2012 and 2013
    
    
    24,565
    
    
    
    74,154
    
    
    
    
    
    
    
    
    
    
    
    98,719Discount Bonds in USD at 8.28%  maturity 2033 (Governed by New York State Legislation)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,975
    
    
    
    9,975Argentine government bonds in USD at 7%  maturity 2015
    
    
    
    
    
    
    
    
    
    
    9,627
    
    
    
    
    
    
    
    9,627Argentine government bonds in USD at 7%  maturity 2017
    
    
    
    
    
    
    
    
    
    
    1,633
    
    
    
    
    
    
    
    1,633Argentine government bonds in USD at 7%  maturity 2011
    
    
    
    
    
    
    1,565
    
    
    
    
    
    
    
    
    
    
    
    1,565Par bonds denominated in USD at variable rate  maturity 2038 (Governed by Argentine Legislation)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    255
    
    
    
    255Discount Bonds in USD at 8.28%  maturity 2033 (Governed by Argentine Legislation)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    161
    
    
    
    161Other
    
    
    7
    
    
    
    
    
    
    
    
    
    
    
    154
    
    
    
    161In pesos:Unlisted government securities
    
    
    3,565
    
    
    
    59,596
    
    
    
    1,378
    
    
    
    
    
    
    
    64,539Argentine government bonds in pesos at Badlar + 3.50%  maturity 2013
    
    
    
    
    
    
    51,864
    
    
    
    
    
    
    
    
    
    
    
    51,864Federal government bonds at variable rate  maturity 2013
    
    
    3,462
    
    
    
    6,923
    
    
    
    
    
    
    
    
    
    
    
    10,385Province of Tucuman bonds at 2%  maturity 2018
    
    
    103
    
    
    
    809
    
    
    
    1,378
    
    
    
    
    
    
    
    2,290In foreign currency:Unlisted government securities
    
    
    775
    
    
    
    3,096
    
    
    
    1,548
    
    
    
    
    
    
    
    5,419Province of Tucumán bonds in USD at Libor  maturity 2015
    
    
    775
    
    
    
    3,096
    
    
    
    1,548
    
    
    
    
    
    
    
    5,419Instruments issued by the Central Bank of Argentina
    
    
    3,524,823
    
    
    
    314,088
    
    
    
    
    
    
    
    
    
    
    
    3,838,911Unlisted Central Bank notes (NOBAC)
    
    
    2,425,592
    
    
    
    214,860
    
    
    
    
    
    
    
    
    
    
    
    2,640,452Listed Central Bank notes (NOBAC)
    
    
    673,268
    
    
    
    99,228
    
    
    
    
    
    
    
    
    
    
    
    772,496Unlisted Central Bank bills (LEBAC)
    
    
    425,963
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    425,963Total government securities
    
    
    3,691,842
    
    
    
    657,978
    
    
    
    105,484
    
    
    
    246,337
    
    
    
    4,701,641PRIVATE SECURITIESIn Pesos:Investments in listed private securities
    
    
    5,923
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,923Mutual Funds
    
    
    5,544
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,544Shares
    
    
    378
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    378Other
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1In foreign currencyInvestments in listed private securities
    
    
    46,060
    
    
    
    25,702
    
    
    
    
    
    
    
    
    
    
    
    71,762Corporate bonds
    
    
    37,927
    
    
    
    25,702
    
    
    
    
    
    
    
    
    
    
    
    63,629Mutual Funds
    
    
    8,133
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,133Total private securities
    
    
    51,983
    
    
    
    25,702
    
    
    
    
    
    
    
    
    
    
    
    77,685Total government and private securities, before allowances
    
    
    3,743,825
    
    
    
    683,680
    
    
    
    105,484
    
    
    
    246,337
    
    
    
    4,779,326Allowances
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (27
    )Total government and private securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,779,299
  F - 59




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 22.
    
    LOANS
  a.
    
    Non-financial government sector: loans to the government sector, excluding government
owned financial institutions.b.
    
    Financial sector: mainly, refers to short-term loans to financial institutions.
 c.
    
    Non financial private sector and foreign residents: loans given to the private sector
(excluding financial institutions) and residents outside Argentina.
  As of December 31,2008
    
    
    2007Non-financial government sector
    
    
    744,507
    
    
    
    732,481Financial sector
    
    
    80,423
    
    
    
    161,702Non-financial private sector and foreign residentsCommercial- With Senior A guarantees
    
    
    134,942
    
    
    
    106,763- With Senior B guarantees
    
    
    466,211
    
    
    
    357,422- Without Senior guarantees
    
    
    4,170,443
    
    
    
    3,405,792Consumer- With Senior A guarantees
    
    
    20,213
    
    
    
    16,637- With Senior B guarantees
    
    
    718,608
    
    
    
    750,974- Without Senior guarantees
    
    
    5,382,959
    
    
    
    4,698,068Less: Allowance
    
    
    (438,348
    )
    
    
    (220,422
    )Total loans, net of allowance
    
    
    11,279,958
    
    
    
    10,009,417
     2008
    
    
    2007Argentina
    
    
    11,688,928
    
    
    
    10,150,371Uruguay
    
    
    12,994
    
    
    
    13,111Bermuda
    
    
    10,048
    
    
    
    Australia
    
    
    3,294
    
    
    
    111Canada
    
    
    3,027
    
    
    
    392Peru
    
    
    10
    
    
    
    9France
    
    
    5
    
    
    
    22United States of America
    
    
    
    
    
    
    48,943England
    
    
    
    
    
    
    15,781Thailand
    
    
    
    
    
    
    687Denmark
    
    
    
    
    
    
    224Chile
    
    
    
    
    
    
    86Brazil
    
    
    
    
    
    
    55Bahamas
    
    
    
    
    
    
    46Spain
    
    
    
    
    
    
    1Less: Allowance
    
    
    (438,348
    )
    
    
    (220,422
    )Total loans, net of allowances
    
    
    11,279,958
    
    
    
    10,009,417
  F - 60




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  Economic Activity
    
    2008
    
    
    2007Retail loans
    
    
    4,023,725
    
    
    
    3,410,359Agricultural livestock- ForestryFishing Mining  Hunting
    
    
    1,538,027
    
    
    
    1,050,102Governmental services
    
    
    886,749
    
    
    
    861,852Other services
    
    
    852,658
    
    
    
    970,585Retail and consumer products
    
    
    831,741
    
    
    
    703,063Chemicals
    
    
    608,157
    
    
    
    340,450Construction
    
    
    563,526
    
    
    
    411,725Foodstuff and beverages
    
    
    521,849
    
    
    
    700,917Financial Services
    
    
    289,450
    
    
    
    408,002Manufactury and wholesale
    
    
    283,555
    
    
    
    166,169Real estate, business and leases
    
    
    267,604
    
    
    
    59,512Transportation, storage and communications
    
    
    263,999
    
    
    
    181,646Electricity, oil, water
    
    
    170,950
    
    
    
    74,256Hotels and restaurants
    
    
    32,325
    
    
    
    39,365Other
    
    
    583,991
    
    
    
    851,836Total loans
    
    
    11,718,306
    
    
    
    10,229,839Less: Allowance
    
    
    (438,348
    )
    
    
    (220,422
    )Total loans, net of Allowance
    
    
    11,279,958
    
    
    
    10,009,417
 23.
    
    ALLOWANCES FOR LOAN LOSSES
  As of December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    220,422
    
    
    
    208,581
    
    
    
    247,532Provision for loan losses (a)(b)
    
    
    314,532
    
    
    
    93,498
    
    
    
    60,102Allowances for loan losses from
acquisition of Nuevo Banco del Tucumán
S.A.
    
    
    
    
    
    
    
    
    
    
    13,993Allowances for loan losses from
acquisition of Nuevo Banco Bisel S.A.
    
    
    
    
    
    
    
    
    
    
    28,443Write Offs
    
    
    (76,246
    )
    
    
    (38,199
    )
    
    
    (132,926
    )Reversals (b)
    
    
    (20,360
    )
    
    
    (43,458
    )
    
    
    (8,563
    )Balance at the end of the fiscal year(c)
    
    
    438,348
    
    
    
    220,422
    
    
    
    208,581
 (a)
    
    As of December 31, 2008, the amount of Provision for loan losses disclosed in the
Statements of Income, includes above amounts and the provision for Other receivables for
financial intermediation and Assets subject to financial lease (see note 27.), without
considering 41,639 mainly related to provision for financial trusts and Foreign currency
exchange.(b)
    
    As of December 31, 2008 the amount of Provisions for loan loss, net disclosed in
note 31., under US SEC Regulation S-X, includes above amounts and provision and reversals
of Assets subject to financial lease disclosed in note 27. less 67,960 mainly related
to Recovered loans and Foreign currency exchange.(c)
    
    As of December 31, 2008, as disclosed in note 31, under SEC requirements, the
amount of allowance for loan losses includes the allowance for assets subject to
financial lease (see note 27.).  F - 61




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 24.
    
    OTHER RECEIVABLES FROM FINANCIAL INTERMEDIATION
  As of December 31,Description
    
    2008
    
    
    2007Without preferred guarantees
    
    
    1,682,653
    
    
    
    1,433,234Allowances
    
    
    (228,588
    )
    
    
    (206,939
    )1,454,065
    
    
    
    1,226,295
  As of December 31,Description
    
    2008
    
    
    2007Repurchased own corporate bonds
    
    
    29,105
    
    
    
    Corporate bonds  Unlisted
    
    
    53,389
    
    
    
    44,257Debt securities in financial trusts  Unlisted
    
    
    227,147
    
    
    
    77,030Certificates of participation in financial trusts  Unlisted (1)
    
    
    337,809
    
    
    
    471,942Total investments in unlisted private securities
    
    
    647,450
    
    
    
    593,229
 (1)
    
    As of December 31, 2008 and 2007, the Bank booked allowances for impairment in value
amounting to 223,893 and 203,797, respectively.  After 1year but
    
    
    After 5Within 1
    
    
    within 5
    
    
    years but
    
    
    After 10
    
    
    Withoutyear
    
    
    years
    
    
    within 10 years
    
    
    years
    
    
    due date
    
    
    TotalRepurchased own corporate bonds
    
    
    29,105
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    29,105Corporate bonds Unlisted
    
    
    28,248
    
    
    
    23,677
    
    
    
    1,464
    
    
    
    
    
    
    
    
    
    
    
    53,389Debt securities in financial
trusts Unlisted
    
    
    167,247
    
    
    
    59,900
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    227,147Certificates of participation
in financial trusts Unlisted
    
    
    1,963
    
    
    
    39,166
    
    
    
    
    
    
    
    61,997
    
    
    
    234,683
    (1
    )
    
    337,809Total investments in unlisted
private securities
    
    
    226,563
    
    
    
    122,743
    
    
    
    1,464
    
    
    
    61,997
    
    
    
    234,683
    
    
    
    647,450
 (1)
    
    As of December 31, 2008 the Bank booked allowances for impairment in value amounting to
223,893.  As of December 31,Description
    
    2008
    
    
    2007Amounts receivable from spot and forward sales pending settlementReceivables from repurchase agreements of government securities
    
    
    426,196
    
    
    
    238,481Receivable from spot sales of government and private securities pending settlement
    
    
    60,858
    
    
    
    174,614Receivables from forward sales of government securities
    
    
    3,214
    
    
    
    4,508Receivables from spot sales of foreign currency settlement
    
    
    4,469
    
    
    
    10,978494,737
    
    
    
    428,581
  F - 62




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31,Description
    
    2008
    
    
    2007Securities and foreign currency receivable from spot and forward purchases
pending settlementSpot purchases of government and private securities pending settlement
    
    
    35,228
    
    
    
    107,354Other spot purchases
    
    
    11,786
    
    
    
    3,198Forward purchases of securities under repurchase agreements
    
    
    5,626
    
    
    
    15,143Spot purchases of foreign currency pending settlement
    
    
    1,640
    
    
    
    23,580Forward purchases of government securities
    
    
    2
    
    
    
    54,282
    
    
    
    149,275Amounts payable for spot and forward purchases pending settlementPayables for spot purchases of government securities pending settlement
    
    
    42,372
    
    
    
    95,655Payables under repo transactions
    
    
    24,495
    
    
    
    25,893Payables for spot purchases of foreign currency pending settlement and
forward purchases of foreign currency
    
    
    1,632
    
    
    
    23,567Payables for forward purchases of securities under repurchase agreements
    
    
    
    
    
    
    13,65068,499
    
    
    
    158,765Securities and foreign currency to be delivered under spot and forward
sales pending settlementForward sales of government securities under repurchase agreements
    
    
    629,973
    
    
    
    276,728Spot sales of government and private securities pending settlement
    
    
    43,307
    
    
    
    152,834Forward sales of foreign currency pending settlement
    
    
    4,463
    
    
    
    10,981Forward sales of government securities
    
    
    1,752
    
    
    
    4,884Other forward sales
    
    
    
    
    
    
    372679,495
    
    
    
    445,799
   End-of-year fair value2008
    
    
    2007Assets
    
    
    53,571
    
    
    
    149,275Liabilities
    
    
    681,295
    
    
    
    445,799
   F - 63




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 25.
    
    BANK PREMISES AND EQUIPMENT AND OTHER ASSETS
 25.1
    
    Premises and Equipment
  As of December, 31Estimateduseful lifeDescription
    
    (years)
    
    
    2008
    
    
    2007Buildings
    
    
    50
    
    
    
    370,522
    
    
    
    310,946Furniture and facilities
    
    
    10
    
    
    
    88,308
    
    
    
    79,397Machinery and equipment
    
    
    5
    
    
    
    362,325
    
    
    
    314,820Vehicles
    
    
    5
    
    
    
    33,976
    
    
    
    53,930Other
    
    
    
    
    
    
    2,303
    
    
    
    2,085Accumulated depreciation
    
    
    
    
    
    
    (426,592
    )
    
    
    (388,067
    )Total
    
    
    
    
    
    
    430,842
    
    
    
    373,111
  25.2
    
    Other assets
  As of December, 31Estimateduseful lifeDescription
    
    (years)
    
    
    2008
    
    
    2007Works in progress
    
    
    
    
    
    
    22,801
    
    
    
    55,533Works of art
    
    
    
    
    
    
    1,206
    
    
    
    1,207Prepayments for the purchase of assets
    
    
    
    
    
    
    365
    
    
    
    157Foreclosed assets
    
    
    50
    
    
    
    25,632
    
    
    
    38,114Leased buildings
    
    
    50
    
    
    
    6,765
    
    
    
    6,883Stationery and office supplies
    
    
    
    
    
    
    5,346
    
    
    
    4,165Other assets (1)
    
    
    50
    
    
    
    87,870
    
    
    
    115,103Accumulated depreciation
    
    
    
    
    
    
    (12,628
    )
    
    
    (14,582
    )Total
    
    
    
    
    
    
    137,357
    
    
    
    206,580
 (1)
    
    Mainly includes buildings not affected by banking activities.  25.3
    
    Operating Leases
   Fiscal year end
    
    Amounts2009
    
    
    17,5162010
    
    
    14,0592011
    
    
    8,0412012
    
    
    3,2882013
    
    
    2,0972014 and after
    
    
    4,198Total
    
    
    49,199
  F - 64




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  26.
    
    INTANGIBLE ASSETS
 26.1.
    
    Goodwill:
  As of December 31,Estimateduseful lifeDescription
    
    (years)
    
    
    2008
    
    
    2007Goodwill for the purchase of Banco de
Jujuy S.A., net of accumulated
amortization of 8,222 as of December
31, 2008 (a)
    
    
    6
    
    
    
    
    
    
    
    8Goodwill for the purchase of Banco del
Tucumán S.A., net of accumulated
amortization of 4,848 as of December
31, 2008 (b)
    
    
    10
    
    
    
    13,395
    
    
    
    15,222Goodwill for the purchase of Nuevo
Banco Bisel S.A., net of accumulated
amortization of 15,960 as of December
31, 2008 (c)
    
    
    10
    
    
    
    50,082
    
    
    
    56,686Total
    
    
    
    
    
    
    63,477
    
    
    
    71,916
  (a)
    
    On January 12, 1998, Banco Macro S.A. acquired 80% of the capital stock of
Banco de Jujuy in the amount of Ps. 5.1 million. The assets transferred amounted to
Ps. 30 million and the liabilities assumed amounted to Ps. 28 million (historical
values).
 Under Central Bank rules, this transaction resulted in Banco Macros positive goodwill
amounting to Ps. 3.5 million, which is amortized in six years and no impairment is
required.
 (b)
    
    As mentioned in note 3.6., on May 5, 2006, Banco Macro acquired 75% of the
capital stock of Banco del Tucumán in the amount of 45,961. The assets transferred
amounted to 700,612 and the liabilities assumed amounted to 660,547.
 Additionally, from September through December 2006, Banco Macro S.A. acquired 4.84% of
the capital stock of Banco del Tucumán S.A.
 Finally, on November 28, 2006, the General Regular and Special Shareholders Meeting
of Banco del Tucumán S.A. approved a capital increase of 21,980, establishing an
additional paid-in capital of 26,171. During January 2007, Banco Macro S.A. subscribed
the total increase, thus increasing its overall interest in Banco del Tucumán S.A. to
89.93%.
 Under Central Bank rules, this transaction resulted in Banco Macros positive goodwill
amounting to 18,242, which is amortized in ten years and no impairment is required.
 (c)
    
    As mentioned in note 3.7., on August 11, 2006, the Bank acquired 92.73% of
the capital stock of Nuevo Banco Bisel in the amount of 19,509. The assets
transferred amounted to 1,824,644 and the liabilities assumed amounted to 1,804,534.
 Under Central Bank rules, as a result of the acquisition, the Bank booked a positive
goodwill amounting to 66,042, which is amortized in ten years and no impairment is
required.
  F - 65




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 26.2.
    
    Organization and development costs:
  As of December 31,Estimated usefulDescription
    
    life (years)
    
    
    2008
    
    
    2007Differences due to courts orders  deposits dollarizations
    
    
    5
    
    
    
    40,657
    
    
    
    53,450Cost from information technology projects
    
    
    5
    
    
    
    74,631
    
    
    
    63,669Organizational cost
    
    
    5
    
    
    
    8,308
    
    
    
    8,313Other capitalized cost
    
    
    5
    
    
    
    11,473
    
    
    
    2,615Total
    
    
    
    
    
    
    135,069
    
    
    
    128,047
  Intangible assets changed as follows during fiscal years ended December 31, 2008, 2007 and
2006:
 Fiscal year ended December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    199,963
    
    
    
    164,047
    
    
    
    70,091Additions
    
    
    62,096
    
    
    
    92,368
    
    
    
    131,491Decreases
    
    
    (8
    )
    
    
    
    
    
    
    (29
    )Amortization expense
    
    
    (63,505
    )
    
    
    (56,452
    )
    
    
    (37,506
    )Balance at the end of the fiscal year
    
    
    198,546
    
    
    
    199,963
    
    
    
    164,047
 27.
    
    OTHER ALLOWANCES AND PROVISIONS
  Allowances  Government and private securities
  As of December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    27
    
    
    
    29
    
    
    
    512Write off
    
    
    
    
    
    
    
    
    
    
    (474
    )Reversals
    
    
    
    
    
    
    (2
    )
    
    
    (9
    )Balance at the end of the fiscal year
    
    
    27
    
    
    
    27
    
    
    
    29
  F - 66




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Allowances  Other receivables from financial intermediation
  As of December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    206,939
    
    
    
    178,319
    
    
    
    27,600Allowances for Other receivables for financial intermediation from
acquisition of Banco del Tucumán S.A.
    
    
    
    
    
    
    
    
    
    
    125Allowances for Other receivables for financial intermediation from
acquisition of Nuevo Banco Bisel S.A.
    
    
    
    
    
    
    
    
    
    
    164,327Provision for other receivables for financial intermediation losses
    
    
    24,099
    
    
    
    38,583
    
    
    
    9,129Write off
    
    
    (761
    )
    
    
    (5,902
    )
    
    
    (6,688
    )Reversals
    
    
    (1,689
    )
    
    
    (4,061
    )
    
    
    (16,174
    )Balance at the end of the fiscal year
    
    
    228,588
    
    
    
    206,939
    
    
    
    178,319
 Allowances  Assets subject to financial lease
  As of December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    4,898
    
    
    
    3,489
    
    
    
    1,470Allowances for Assets subjects to financial
leases from acquisition of Banco del Tucumán
S.A.
    
    
    
    
    
    
    
    
    
    
    226Allowances for Assets subjects to financial
leases from acquisition of Nuevo Banco Bisel
S.A.
    
    
    
    
    
    
    
    
    
    
    299Provision for assets subject to financial lease
    
    
    614
    
    
    
    1,557
    
    
    
    1,529Write off
    
    
    
    
    
    
    
    
    
    
    (19
    )Reversals
    
    
    (121
    )
    
    
    (148
    )
    
    
    (16
    )Balance at the end of the fiscal year(1)
    
    
    5,391
    
    
    
    4,898
    
    
    
    3,489
 (1)
    
    Under U.S. SEC requirements, as disclosed in note 31, they were included in Assets 
Allowance for loans losses. Allowances  Investment in other companies
  As of December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    697
    
    
    
    1,172
    
    
    
    1,304Provision for investment in other companies losses
    
    
    45
    
    
    
    85
    
    
    
    18Write off
    
    
    (487
    )
    
    
    (11
    )
    
    
    Reversals
    
    
    (8
    )
    
    
    (549
    )
    
    
    (150
    )Balance at the end of the fiscal year
    
    
    247
    
    
    
    697
    
    
    
    1,172
  F - 67




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Allowances  Other receivables
  As of December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    27,034
    
    
    
    36,153
    
    
    
    18,246Allowances for Other receivables from
acquisition of Banco del Tucumán S.A.
    
    
    
    
    
    
    
    
    
    
    1Allowances for Other receivables from
acquisition of Nuevo Banco Bisel S.A.
    
    
    
    
    
    
    
    
    
    
    18,892Provision for other receivables losses
    
    
    7,332
    
    
    
    1,936
    
    
    
    8,175Write off
    
    
    (18,011
    )
    
    
    (3,959
    )
    
    
    (8,694
    )Reversals
    
    
    (517
    )
    
    
    (7,096
    )
    
    
    (467
    )Balance at the end of the fiscal year
    
    
    15,838
    
    
    
    27,034
    
    
    
    36,153Total of allowances
    
    
    250,091
    
    
    
    239,595
    
    
    
    219,162
 Provisions  Contingencies Commitments
  As of December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    1,660
    
    
    
    1,674
    
    
    
    2,076Provision for contingent commitments losses
    
    
    40
    
    
    
    55
    
    
    
    7Write off
    
    
    
    
    
    
    
    
    
    
    Reversals
    
    
    (177
    )
    
    
    (69
    )
    
    
    (409
    )Balance at the end of the fiscal year
    
    
    1,523
    
    
    
    1,660
    
    
    
    1,674
 Provisions  Negative Goodwill
  As of December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    483
    
    
    
    483
    
    
    
    73,595Amortization
    
    
    
    
    
    
    
    
    
    
    (73,112
    )Balance at the end of the fiscal year
    
    
    483
    
    
    
    483
    
    
    
    483
 Provisions  Other loss contingencies
   F - 68




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    78,044
    
    
    
    75,085
    
    
    
    102,479Provision for other contingent losses
    
    
    28,792
    
    
    
    23,638
    
    
    
    20,087Provision for other contingent losses from
acquisition of Banco del Tucumán S.A.
    
    
    
    
    
    
    
    
    
    
    994Provision for other contingent losses from
acquisition of Nuevo Banco Bisel S.A.
    
    
    
    
    
    
    
    
    
    
    11,790Write off
    
    
    (22,686
    )
    
    
    (18,728
    )
    
    
    (58,213
    )Reversals
    
    
    (21,385
    )
    
    
    (1,951
    )
    
    
    (2,052
    )Balance at the end of the fiscal year
    
    
    62,765
    
    
    
    78,044
    
    
    
    75,085
 Provisions  For severance pay
  As of December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    
    
    
    
    496
    
    
    
    Provision for severance pay
    
    
    
    
    
    
    
    
    
    
    1,000Write off
    
    
    
    
    
    
    (496
    )
    
    
    (504
    )Balance at the end of the fiscal year
    
    
    
    
    
    
    
    
    
    
    496
 Provision  Difference from court deposit dollarization
  As of December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    21,146
    
    
    
    
    
    
    
    Provision from court deposits dollarization
    
    
    1,864
    
    
    
    21,678
    
    
    
    Write off
    
    
    (4,777
    )
    
    
    (532
    )
    
    
    Balance at the end of the fiscal year
    
    
    18,233
    
    
    
    21,146
    
    
    
    Total of provisions
    
    
    83,004
    
    
    
    101,333
    
    
    
    77,738
 28.
    
    DEPOSITS AND OTHER LIABILITIES FROM FINANCIAL INTERMEDIATION
 28.1
    
    Deposits
  28.2
    
    Central Bank of Argentina
  As of December 31, 2008
    
    
    As of December 31, 2007Interest and
    
    
    
    
    
    
    
    
    
    
    Interest andCER
    
    
    
    
    
    
    
    
    
    
    CERPrincipal
    
    
    adjustments
    
    
    Rate
    
    
    Principal
    
    
    adjustments
    
    
    RateShortterm liabilities
    
    
    35,746
    
    
    
    43,193
    
    
    
    1.95
    %
    
    
    34,660
    
    
    
    37,866
    
    
    
    1.97
    %Longterm liabilities
    
    
    101,516
    
    
    
    122,305
    
    
    
    2.00
    %
    
    
    135,182
    
    
    
    140,188
    
    
    
    2.00
    %Total (1)
    
    
    137,262
    
    
    
    165,498
    
    
    
    
    
    
    
    169,842
    
    
    
    178,054
  F - 69




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 (1)
    
    As mentioned in note 2, during January and February 2009, as set forth by
Central Bank Resolution No. 06/2009 the Bank and its subsidiary Nuevo Banco Bisel
S.A. have decided to prepay the payable amounts resulting from loans received to
acquire Argentine Government bonds intended for the depositors of former Nuevo Banco
Suquía S.A. and Nuevo Banco Bisel S.A. in the amount of 291,609 (see note 7.2.b)). 28.3
    
    Banks and international institutions
 As of December 31, 2008
    
    
    As of December 31, 2007Principal
    
    
    Interest
    
    
    Rate
    
    
    Principal
    
    
    Interest
    
    
    RateShortterm liabilities
    
    
    52,283
    
    
    
    7,454
    
    
    
    4.92
    %
    
    
    3,388
    
    
    
    3,891
    
    
    
    5.58
    %Longterm liabilities (1)
    
    
    172,685
    
    
    
    
    
    
    
    8.54
    %
    
    
    157,551
    
    
    
    
    
    
    
    6.56
    %Total
    
    
    224,968
    
    
    
    7,454
    
    
    
    
    
    
    
    160,939
    
    
    
    3,891
  (1)
    
    On June 16, 2006, the Bank and Crédit Suisse First Boston International
entered into a loan agreement for USD 50,000,000, maturing on January 21, 2008, at
LIBOR plus 1.95%. Such agreement includes restrictions mainly related to the
compliance with the payments established. In the event of noncompliance with the
agreement, the Bank will be unable to distribute dividends either directly or
indirectly through its subsidiaries. On January 18, 2008, an addendum was signed
changing the expiration date to January 21, 2010, and establishing a nominal
interest rate of 8.55% per anum. As of December 31, 2008 the Bank had duly complied
with the obligations assumed with the loan. 28.4
    
    Financing received from Argentine financial institutions
  As of December 31, 2008
    
    
    As of December 31, 2007Principal
    
    
    Interest
    
    
    Rate
    
    
    Principal
    
    
    Interest
    
    
    RateShortterm liabilities
    
    
    30,181
    
    
    
    1,665
    
    
    
    10.33
    %
    
    
    116,664
    
    
    
    2,374
    
    
    
    6.75
    %Longterm liabilities
    
    
    18,958
    
    
    
    23,002
    
    
    
    2.00
    %
    
    
    20,142
    
    
    
    21,116
    
    
    
    2.02
    %Total
    
    
    49,139
    
    
    
    24,667
    
    
    
    
    
    
    
    136,806
    
    
    
    23,490
   As ofDecemberPeriods
    
    31, 20082010
    
    
    3,7152011
    
    
    3,9342012
    
    
    3,9342013
    
    
    3,9332014
    
    
    6,0102015
    
    
    6,4252016
    
    
    6,4252017
    
    
    6,4252018
    
    
    1,15941,960
  F - 70




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 28.5
    
    Others
  As of December 31, 2008
    
    
    As of December 31, 2007Principal
    
    
    Interest
    
    
    Rate
    
    
    Principal
    
    
    Interest
    
    
    RateShortterm liabilities
    
    
    545,146
    
    
    
    37
    
    
    
    0.02
    %
    
    
    412,940
    
    
    
    35
    
    
    
    0.03
    %Longterm liabilities (1)
    
    
    80,835
    
    
    
    1,123
    
    
    
    3.96
    %
    
    
    80,673
    
    
    
    1,079
    
    
    
    3.98
    %Total
    
    
    625,981
    
    
    
    1,160
    
    
    
    
    
    
    
    493,613
    
    
    
    1,114
 (1)
    
    Includes the liability assumed with SEDESA related to the acquisition of
preferred shares of Nuevo Banco Bisel S.A. in the amount of 71,653 (see note 3.7.). 29.
    
    EMPLOYEE BENEFIT PLANS
   30.
    
    MINIMUM CAPITAL REQUIREMENTS
  Excess of actual MinimumRequired
    
    
    Computable
    
    
    Capital over RequiredMinimum Capital
    
    
    Capital
    
    
    Minimum CapitalDecember 31, 2008
    
    
    1,341,598
    
    
    
    3,113,825
    
    
    
    1,772,227December 31, 2007
    
    
    1,150,183
    
    
    
    2,969,676
    
    
    
    1,819,493
 31.
    
    CONSOLIDATED INCOME STATEMENTS AND BALANCE SHEET
  Consolidated Statements of Income
    
    2008
    
    
    2007 (1)
    
    
    2006 (1)Interest and fees on loans
    
    
    2,105,895
    
    
    
    1,287,555
    
    
    
    739,214Interest on bearing deposits with other banks
    
    
    7,010
    
    
    
    19,917
    
    
    
    10,516Interest on other receivables from financial intermediation
    
    
    174,038
    
    
    
    67,022
    
    
    
    68,146Interest on securities and foreign exchange purchased
under resale agreements
    
    
    28,010
    
    
    
    24,642
    
    
    
    18,311Securities gains, net
    
    
    569,095
    
    
    
    437,832
    
    
    
    274,029Other interest income
    
    
    23,166
    
    
    
    15,774
    
    
    
    43,402Total interest income
    
    
    2,907,214
    
    
    
    1,852,742
    
    
    
    1,153,618
  F - 71




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Consolidated Statements of Income (contd.)
    
    2008
    
    
    2007 (1)
    
    
    2006 (1)Interest on deposits
    
    
    970,072
    
    
    
    501,168
    
    
    
    280,325Interest on securities and foreign exchange purchased under
resale agreements
    
    
    5,723
    
    
    
    10,998
    
    
    
    9,634Interest on short-term borrowings
    
    
    29,227
    
    
    
    4,860
    
    
    
    7,094Interest on long-term debt
    
    
    150,457
    
    
    
    161,374
    
    
    
    16,474Other interest expense
    
    
    160,487
    
    
    
    100,068
    
    
    
    96,195Total interest expense
    
    
    1,315,966
    
    
    
    778,468
    
    
    
    409,722Net interest income
    
    
    1,591,248
    
    
    
    1,074,274
    
    
    
    743,896Provision for loan losses, net
    
    
    (226,705
    )
    
    
    38,401
    
    
    
    59,623Net interest income after provision for loan losses
    
    
    1,364,543
    
    
    
    1,112,675
    
    
    
    803,519Service charges on deposit accounts and other fees
    
    
    570,968
    
    
    
    370,147
    
    
    
    267,603Credit-card service charges and fees
    
    
    153,413
    
    
    
    102,856
    
    
    
    60,102Other commissions
    
    
    19,557
    
    
    
    19,789
    
    
    
    16,775Foreign currency exchange trading income
    
    
    19,261
    
    
    
    15,947
    
    
    
    11,607Income from equity in other companies
    
    
    32,986
    
    
    
    13,477
    
    
    
    7,928Foreign exchange, net
    
    
    143,094
    
    
    
    48,823
    
    
    
    40,007Negative Goodwill
    
    
    
    
    
    
    
    
    
    
    73,112Other
    
    
    119,576
    
    
    
    117,509
    
    
    
    81,392Total non-interest income
    
    
    1,058,855
    
    
    
    688,548
    
    
    
    558,526Commissions
    
    
    57,077
    
    
    
    49,965
    
    
    
    44,607Salaries and payroll taxes
    
    
    796,129
    
    
    
    587,480
    
    
    
    395,421Outside consultants and services
    
    
    54,375
    
    
    
    41,802
    
    
    
    38,768Depreciation of bank premises and equipment
    
    
    51,499
    
    
    
    43,972
    
    
    
    30,736Rent
    
    
    21,685
    
    
    
    18,635
    
    
    
    14,085Stationery and supplies
    
    
    15,050
    
    
    
    14,511
    
    
    
    8,880Electric power and communications
    
    
    37,004
    
    
    
    31,980
    
    
    
    23,490Advertising and publicity
    
    
    53,178
    
    
    
    50,343
    
    
    
    31,138Taxes
    
    
    12,099
    
    
    
    9,673
    
    
    
    7,298Directors and Statutory Audits fee
    
    
    26,941
    
    
    
    37,695
    
    
    
    14,355Insurance
    
    
    6,073
    
    
    
    6,091
    
    
    
    5,238Security services
    
    
    42,241
    
    
    
    35,487
    
    
    
    25,002Maintenance, conservation and repair expenses
    
    
    47,743
    
    
    
    36,392
    
    
    
    24,825Amortization of organization and development expenses
    
    
    63,210
    
    
    
    55,906
    
    
    
    37,291Provision for losses on other receivables and other allowances
    
    
    37,242
    
    
    
    15,599
    
    
    
    26,713Other
    
    
    177,241
    
    
    
    176,064
    
    
    
    129,719Total non-interest expense
    
    
    1,498,787
    
    
    
    1,211,595
    
    
    
    857,566Minority interest of subsidiaries
    
    
    (3,354
    )
    
    
    (2,083
    )
    
    
    (3,178
    )Income before income tax expense
    
    
    921,257
    
    
    
    587,545
    
    
    
    501,301Income tax expense
    
    
    261,207
    
    
    
    92,345
    
    
    
    76,961Income from continuing operations
    
    
    660,050
    
    
    
    495,200
    
    
    
    424,340Net income
    
    
    660,050
    
    
    
    495,200
    
    
    
    424,340Earnings per common share
    
    
    1.00
    
    
    
    0.72
    
    
    
    0.64
 (1)
    
    See note 4.2.  F - 72




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  2008
    
    
    2007 (1)ASSETSCash
    
    
    824,387
    
    
    
    875,486Interest-bearing deposits in other banks
    
    
    2,395,525
    
    
    
    2,428,779Federal Funds sold and securities purchased under resale
agreements of similar arrangements
    
    
    431,822
    
    
    
    253,623Trading account assets
    
    
    422,125
    
    
    
    616,508Investment securities available for sale
    
    
    4,410,387
    
    
    
    3,379,045Loans
    
    
    12,215,599
    
    
    
    10,649,628Allowance for loan losses
    
    
    (443,739
    )
    
    
    (225,320
    )Premises and equipment
    
    
    567,892
    
    
    
    626,319Due from customers on acceptances
    
    
    147,843
    
    
    
    131,407Other assets
    
    
    1,022,836
    
    
    
    702,951Total assets
    
    
    21,994,677
    
    
    
    19,438,426LIABILITIES AND SHAREHOLDERS EQUITYInterest-bearing deposits
    
    
    12,214,166
    
    
    
    9,916,821Non interest-bearing deposits
    
    
    3,091,498
    
    
    
    3,674,328Federal Funds purchased and securities sold under repurchase agreements
    
    
    654,467
    
    
    
    316,270Other short-term borrowings
    
    
    732,223
    
    
    
    629,951Long-term borrowings
    
    
    1,199,675
    
    
    
    1,336,519Contingent liabilities
    
    
    82,155
    
    
    
    104,186Other liabilities
    
    
    518,765
    
    
    
    117,903Bank acceptances outstanding
    
    
    147,843
    
    
    
    131,407Subordinated corporate bonds
    
    
    521,681
    
    
    
    490,695Minority interest in consolidated subsidiaries
    
    
    15,607
    
    
    
    12,640Total liabilities
    
    
    19,178,080
    
    
    
    16,730,720Common stocks
    
    
    683,979
    
    
    
    683,979Retained appropriated earnings
    
    
    481,954
    
    
    
    382,916Retained unappropriated earnings
    
    
    1,251,569
    
    
    
    1,241,716Other shareholders equity
    
    
    399,095
    
    
    
    399,095Total shareholders equity
    
    
    2,816,597
    
    
    
    2,707,706Total liabilities and shareholders equity
    
    
    21,994,677
    
    
    
    19,438,426
 (1)
    
    See note 4.2.  F - 73




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 32.
    
    OPERATIONS BY GEOGRAPHICAL SEGMENT
  As of December 31,2008
    
    
    2007
    
    
    2006Total revenues
    
    
    4,110,010
    
    
    
    2,736,273
    
    
    
    1,842,298Argentina
    
    
    4,088,419
    
    
    
    2,704,895
    
    
    
    1,818,761Bahamas
    
    
    21,591
    
    
    
    31,378
    
    
    
    23,537Net income
    
    
    660,050
    
    
    
    495,200
    
    
    
    424,340Argentina
    
    
    656,611
    
    
    
    485,079
    
    
    
    419,523Bahamas
    
    
    3,439
    
    
    
    10,121
    
    
    
    4,817Total assets
    
    
    22,424,997
    
    
    
    19,718,232
    
    
    
    14,477,840Argentina
    
    
    22,030,770
    
    
    
    19,193,530
    
    
    
    13,973,130Bahamas
    
    
    394,227
    
    
    
    524,702
    
    
    
    504,710
 33.
    
    FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
   Derivatives
   
    
    Options: they confer the right to the buyer, but no obligation, to receive or pay a
specific quantity of an asset or financial instrument for a specified price at or before a
specified date. Options may be traded on a stock exchange or under OTC (Over-the-Counter)
agreements.
 
    
    Forwards and Futures: they are agreements to deliver or take delivery at a specified
rate, price or index applied against the underlying asset or financial instrument, at a
specific date. Futures are exchange traded at standardized amounts of the underling asset
or financial instrument. Forwards contracts are OTC agreements and are principally dealt
in by the Bank in securities/foreign exchange as forward agreements.
 
    
    Swaps: they are agreements between two parts with the intention to exchange cash flows
and risks at a specific date and for a period in the future. Swaps may be exchange traded
or OTC agreements.
    F - 74




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  As of December 31,2008
    
    
    2007Forward purchases of foreign exchange without delivery of underlying asset (a)
    
    
    2,219,777
    
    
    
    331,411Forward sales of foreign exchange without delivery of underlying asset (a)
    
    
    1,214,988
    
    
    
    94,838Put options sold (b)
    
    
    99,826
    
    
    
    113,809Interest rate swaps (c)
    
    
    39,422
    
    
    
    36,238Put options taken (d)
    
    
    24,349
    
    
    
    Call options sold (e)
    
    
    
    
    
    
    549
 (a)
    
    It is related mainly to negotiation transactions of forward foreign currency exchange
rates, carried out through the local markets (ROFEX and MAE). The differences of such
trading transactions are settled on a daily basis based on the prices agreed upon and their
quoted price upon maturity; the underlying asset is not delivered or received.The Bank enters into these transactions to take advantage of price differentials. Under
Central Bank rules, they were valued at their quoted prices as of December 31, 2008 and
2007. They expired a few days later. Any quoted price-differences were charged to income.(b)
    
    As of 2008 and 2007, the Bank recorded in memorandum accounts the amounts representing
obligations of the Bank under put options sold related to the Federal Government Bond
coupons established in Presidential Decrees Nos. 905/02 and 1,836/02. Such options were
imposed by the Federal Government to all financial institutions.During the Argentine crisis and pursuant to such decrees, the deposits which were
denominated in US Dollars were exchanged for peso denominated government bonds using a
Ps.1.4 to the U.S.$1.00 exchange rate. The bonds received by the depositors carried an
interest rate plus CER (an inflation index) adjustment.In order to enhance the publics trust in the system and the exchange mechanisms, the
Central Bank effectively required the banks to issue a put option to the depositors who so
requested. Such put options will entitle the bondholders to receive 1.4 exchange rate, plus
accrued interest plus CER. This was intended to effectively provide a floor for the yield of
such government bonds for the holders, therefore, if the value of these bonds were to
decrease below the terms of the put options (ie, Ps.1.4 exchange rate plus interest plus
CER), only the original depositor would then be able to present the put options to the Bank
and receive such value. These options expire 30 days after the expiration of each coupon
received by the depositors, in varying dates through 2013. As it is a put option established
by the Federal Government to the detriment of the Bank, the holders of such options did not
pay any type of premium to the Bank and thus the Bank has never recognized any income from
these options, and has never established an initial liability since it received no up-front
premium.After the exchange, these government bonds have increased in value significantly given the
improvement of the Argentinas economy and therefore of the governments creditworthiness.
As a result of that, the management of the Bank estimates that many of the original
depositors had sold their bonds. Consequently, the options had been extinguished.Therefore the options have never had any intrinsic value. It should be noted that the
interest rate and terms of the options are the same as the bonds and therefore the options
will only be exercised in case of government default. The Bank understands that such options
have only a di minimus value. Under Central Bank rules, they were valued at their original
strike price and recorded only in memo accounts.  F - 75




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 (c)
    
    Relates to an interest rate swap agreement whereby on a quarterly basis the Bank shall
be entitled to receive the positive difference between 10.25% nominal interest per anum and
the variable rate agreed-upon in relation to a loan granted by the Bank (LIBOR at 90 days
plus 2.9%), applied to the residual principal of such loan. In the event that the
difference between both rates was negative, the Bank shall be required to pay the
difference. This agreement expires September 27, 2018.(d)
    
    Related to put options taken by the Bank in connection with underwriting agreements
mentioned in note 13.1.g). The purpose of these options was to recover the reimbursements
made by the Bank.Under Central Bank rules, these options were valued at the agreed-upon strike price (see
also note 4.4.m.3).These agreements expired on January and February, 2009. The Bank did not exercise the
options.(e)
    
    As of December 31, 2007 the Bank sold call options over stock index. Under Central Bank
rules, the call options were value at their quoted price. The Bank enters into this
transaction to take advantage of price differentials. This agreement expired on January 19,
2008. The counterparty did not exercise the option. Credit-related financial instruments
   As of December 31,2008
    
    
    2007Other guarantees provided covered by debtors classification regulations
    
    
    84,136
    
    
    
    115,930Other guarantees provided not covered by debtors classification regulations
    
    
    57,758
    
    
    
    58,773Other covered by debtors classification standards
    
    
    90,085
    
    
    
    131,407
 (*)
    
    Most of this amount as of December 31, 2008 and 2007, have a remaining maturity of less
than one year.      F - 76




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31,2008
    
    
    2007Checks drawn on the Bank pending clearing
    
    
    781,996
    
    
    
    691,520Checks drawn on other Banks
    
    
    259,303
    
    
    
    183,684
 Trust activities
  34.
    
    BUSINESS SEGMENT CONSOLIDATED INFORMATION
  35.
    
    SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN CENTRAL BANK RULES AND UNITED STATES ACCOUNTING
PRINCIPLES
  35.1.
    
    Income taxes
 a)
    
    As explained in note 5, Central Bank rules do not require the
recognition of deferred tax assets and liabilities and, therefore, income tax is
recognized on the basis of amounts due in accordance with Argentine tax regulations
and no deferred tax and liabilities are recognized.
      F - 77




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  As of December 31,Description
    
    2008
    
    
    2007Deferred tax assets:Governments and private securities valuation
    
    
    20,879
    
    
    
    Loans
    
    
    106,691
    
    
    
    55,708Intangible assets
    
    
    15,252
    
    
    
    84,945Allowance for loss contingencies
    
    
    55,976
    
    
    
    57,318Net tax loss carry forwards
    
    
    888
    
    
    
    54,796Other
    
    
    28,476
    
    
    
    24,734Total deferred assets
    
    
    228,162
    
    
    
    277,501Deferred tax liabilities:Governments and private securities valuation
    
    
    
    
    
    
    (3,796
    )Property, equipment and other assets
    
    
    (5,952
    )
    
    
    (5,411
    )Foreign exchange difference
    
    
    (15,688
    )
    
    
    (12,004
    )Other
    
    
    (14,268
    )
    
    
    (13,746
    )Total deferred liabilities
    
    
    (35,908
    )
    
    
    (34,957
    )Deferred tax asset
    
    
    192,254
    
    
    
    242,544Allowance for deferred tax assets
    
    
    (89,308
    )
    
    
    (119,467
    )Net deferred tax assets under US GAAP
    
    
    102,946
    
    
    
    123,077
  Expiration year
    
    Amount2009
    
    
    5002010
    
    
    2502011
    
    
    4212012
    
    
    1,2942013
    
    
    722,537
  As of December 31,2008
    
    
    2007
    
    
    2006Net deferred tax assets at the beginning of the year
    
    
    123,077
    
    
    
    182,902
    
    
    
    106,553Net deferred tax (liabilities) / assets acquired
from acquisition on business combination (*)
    
    
    
    
    
    
    (3,359
    )
    
    
    136,616Net amount recorded in comprehensive income
    
    
    42,132
    
    
    
    8,333
    
    
    
    9,719Net deferred tax expense for the year
    
    
    (62,263
    )
    
    
    (64,799
    )
    
    
    (69,986
    )Net deferred tax assets at the end of the year
    
    
    102,946
    
    
    
    123,077
    
    
    
    182,902
 (*)
    
    See note 35.7.  F - 78




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  Year ended December 31,Description
    
    2008
    
    
    2007
    
    
    2006Income tax in accordance with Central Bank regulations
    
    
    261,207
    
    
    
    92,345
    
    
    
    76,961Deferred tax charges
    
    
    62,263
    
    
    
    64,799
    
    
    
    69,986Total income tax expense in accordance with US GAAP
    
    
    323,470
    
    
    
    157,144
    
    
    
    146,947
  Year ended December 31,Description
    
    2008
    
    
    2007
    
    
    2006Pre-tax income in accordance with US GAAP
    
    
    951,713
    
    
    
    559,674
    
    
    
    546,611Statutory income tax rate
    
    
    35.00
    %
    
    
    35.00
    %
    
    
    35.00
    %Tax on net income at statutory rate
    
    
    333,099
    
    
    
    195,886
    
    
    
    191,314Permanent differences at the statutory rate:- Variation of allowances
    
    
    (30,159
    )
    
    
    15,354
    
    
    
    84,116- Income not subject to income tax
    
    
    (4,073
    )
    
    
    (57,908
    )
    
    
    (111,575
    )- Others
    
    
    24,603
    
    
    
    3,812
    
    
    
    (16,908
    )Income tax in accordance with US GAAP
    
    
    323,470
    
    
    
    157,144
    
    
    
    146,947
   b)
    
    In addition, as of December 31, 2008, 2007 and 2006 the Bank had asset
of 25,767, 45,293 and 47,780, respectively, for the credit for Tax on minimum
presumed income. As mentioned in note 5 to the financial statements, under Central
Bank Rules, such credit is considered to be an asset because Management estimates
it will be used within ten years, which is the period allowed by the Central Bank
Communiqué A 4,295, as amended.
     F - 79




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 35.2.
    
    Exposure to the Argentine Public Sector and Private Securities
 a)
    
    LoansNon-financial federal government sector
        b)
    
    Secured Bonds
    c)
    
    Other LoansNon-financial provincial government sector
   F - 80




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
   d)
    
    Compensatory Bonds in connection with the compensation for foreign
currency position
      e)
    
    Instruments issued by Central Bank of Argentina and other unlisted
securities
     f)
    
    Holdings in special investment accounts in accordance with Central Bank
rules
   F - 81




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
     Gains as of December 31,Trading Securities
    
    2008
    
    
    2007
    
    
    2006Debt Securities Issued by Argentinian Government
    
    
    16,874
    
    
    
    467
    
    
    
    2,404Shares
    
    
    
    
    
    
    (15
    )
    
    
    11Corporate Bonds
    
    
    319
    
    
    
    (315
    )
    
    
    116Other Debt Securities
    
    
    
    
    
    
    
    
    
    
    10Other
    
    
    (656
    )
    
    
    2,850
    
    
    
    29716,537
    
    
    
    2,987
    
    
    
    2,838
  Amortized Cost
    
    
    Gross Unrealized Gains
    
    
    Fair Value2008
    
    
    4,416,932
    
    
    
    (104,792
    ) (*)
    
    
    4,312,1402007
    
    
    3,363,428
    
    
    
    6,727
    
    
    
    3,370,1552006
    
    
    2,842,286
    
    
    
    26,199
    
    
    
    2,868,485
 (*)
    
    These securities have been in a continuous unrealized loss position for less than 12
months.  Proceeds from salesas of December 31,Available for sale securities
    
    2008 (*)
    
    
    2007 (*)
    
    
    2006 (*)Debt Securities Issued by Argentinian Government and others
    
    
    3,450,382
    
    
    
    2,050,941
    
    
    
    2,845,568
 (*)
    
    As of December 31, 2008, 2007 and 2006, realized gains as a result of those sales
amounted to 2,538, 17,832 and 43,742, respectively.  Securities
    
    2007
    
    
    Increase
    
    
    Decrease
    
    
    2008Holdings in special
investment accounts
    
    
    
    
    
    
    
    
    
    
    (34,678
    )
    
    
    (34,678
    )Unlisted Government Securities
    
    
    1,957
    
    
    
    
    
    
    
    (18,840
    )
    
    
    (16,883
    )Secured Bonds
    
    
    7,648
    
    
    
    
    
    
    
    (24,100
    )
    
    
    (16,452
    )Instrument issued by Central
Bank of Argentina
    
    
    (2,538
    )
    
    
    2,538
    
    
    
    (32,509
    )
    
    
    (32,509
    )Corporate Bonds
    
    
    (340
    )
    
    
    
    
    
    
    (3,930
    )
    
    
    (4,270
    )Total
    
    
    6,727
    
    
    
    2,538
    
    
    
    (114,057
    )
    
    
    (104,792
    )
  F - 82




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Securities
    
    2006
    
    
    Increase
    
    
    Decrease
    
    
    2007Unlisted Government Securities
    
    
    
    
    
    
    1,957
    
    
    
    
    
    
    
    1,957Secured Bonds
    
    
    10,309
    
    
    
    
    
    
    
    (2,661
    )
    
    
    7,648Instrument issued by Central
Bank of Argentina
    
    
    15,890
    
    
    
    
    
    
    
    (18,428
    )
    
    
    (2,538
    )Corporate Bonds
    
    
    
    
    
    
    
    
    
    
    (340
    )
    
    
    (340
    )Total
    
    
    26,199
    (1)
    
    
    1,957
    
    
    
    (21,429
    )(2)
    
    
    6,727
 Securities
    
    2005
    
    
    Increase
    
    
    Decrease
    
    
    2006Compensatory Bonds
    
    
    20,017
    
    
    
    
    
    
    
    (20,017
    )
    
    
    Secured Bonds
    
    
    34,036
    
    
    
    
    
    
    
    (23,727
    )
    
    
    10,309Instrument issued
by Central Bank of
Argentina
    
    
    
    
    
    
    15,890
    
    
    
    
    
    
    
    15,890Total
    
    
    54,053
    
    
    
    15,890
    (1)
    
    
    (43,744
    )
    
    
    26,199
 (1)
    
    Taking into account the unrealized gains related to the financial trusts
mentioned in note 35.22., increase amounted to 17,270 and the balance as of
December 31, 2006 amounted to 27,579.(2)
    
    Taking into account the liquidation of the financial trusts mentioned in
note 35.22., decrease amounted to 22,809.   a)
    
    The decline is attributable solely to adverse interest rate
movements, and has not connection with a credit event;b)
    
    The principal and interest payments have been made as scheduled,
and there is not evidence that the debtor will not continue to do so;c)
    
    The Bank has the intention and the ability to hold the security
at least until the fair value of the security recovers to a level that exceeds
the securitys amortized costs.
 35.3.
    
    Loan origination fees
     F - 83




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 35.4.
    
    Allowance for loan losses
            a)
    
    Recoveries and charge-offs
   F - 84




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 b)
    
    Credit Card Loans
    c)
    
    Impaired loansNon Financial Private Sector and residents abroad
    Fiscal year ended December 31,2008
    
    
    2007
    
    
    2006Total amount of loans considered as impaired
    
    
    365,406
    
    
    
    213,216
    
    
    
    141,504Amount of loans considered as impaired for which
there is a related allowance for credit losses
    
    
    309,106
    
    
    
    158,836
    
    
    
    135,219Amount of loans considered as impaired for which
there is no related allowance for credit losses
    
    
    56,300
    
    
    
    54,380
    
    
    
    6,285Reserves allocated to impaired loans
    
    
    160,357
    
    
    
    89,665
    
    
    
    71,524Average balance of impaired loans during the fiscal year
    
    
    288,430
    
    
    
    215,300
    
    
    
    179,673Interest income recognized on impaired loans
    
    
    20,638
    
    
    
    9,119
    
    
    
    881
     F - 85




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  Fiscal year ended December 31,2008
    
    
    2007
    
    
    2006Balance at the beginning of the fiscal year
    
    
    114,912
    
    
    
    97,116
    
    
    
    174,646Provision for loan losses
    
    
    312,411
    
    
    
    99,453
    
    
    
    63,959Write offs
    
    
    (76,246
    )
    
    
    (38,199
    )
    
    
    (132,926
    )Reversals
    
    
    (20,360
    )
    
    
    (43,458
    )
    
    
    (8,563
    )Balance at the end of the fiscal year
    
    
    330,717
    
    
    
    114,912
    
    
    
    97,116
 d)
    
    Interest recognition  non-accrual loans
    35.5.
    
    Intangible assets
 a)
    
    Judgments due to court decisions related to foreign currency-
denominated deposits
        F - 86




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 b)
    
    Software costs
     c)
    
    Organizational costs
   35.6.
    
    Vacation accrual
    35.7.
    
    Business Combinations
   F - 87




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 a)
    
    Acquisition of controlling interest in former Banco Bansud S.A.
     Net assets
    
    
    (1,146,140
    )% acquired
    
    
    81.225
    %Net assets acquired
    
    
    (930,952
    )Irrevocable capital contribution transferred
    
    
    970,668
    (*)Total net assets acquired
    
    
    39,716Purchase price
    
    
    Negative Goodwill
    
    
    (39,716
    ) (**)
 (*)
    
    The irrevocable capital contributions were made by Banamex in
its capacity as Banco Bansud S.A.s shareholder pursuant to the acquisition by
Banco Macro S.A. The Bank obtained the rights over these irrevocable
contributions as the new shareholders of Banco Bansud S.A.(**)
    
    The negative goodwill has been applied to reduce on a pro rata
basis the amounts assigned to the non-current assets acquired. Given the
Argentine economic environment and the Banks situation at the time of the
acquisition, no identifiable intangible assets were recognized.    F - 88




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 b)
    
    Merger with and into former Banco Bansud S.A.  a downstream merger
      Net assets
    
    
    727,817% acquired
    
    
    18.775
    %Net assets acquired
    
    
    136,648Purchase price
    
    
    127,694Negative Goodwill
    
    
    (8,954
    )(*)
 (*)
    
    The negative goodwill has been applied to reduce on a pro
rata basis the amount assigned to the non-current intangible and tangible
assets acquired.    F - 89




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 c)
    
    Acquisition of Nuevo Banco Suquía S.A.  Merger with and into Former
Nuevo Banco Suquía S.A.
 c.1)
    
    Acquisition of Nuevo Banco Suquía S.A.
     Net assets
    
    
    110,482% acquired
    
    
    100
    %Purchase price
    
    
    16,407Negative Goodwill
    
    
    (94,075
    )(*)
 (*)
    
    The negative goodwill has been applied to reduce on a pro
rata basis the amounts assigned to the non-current intangible and tangible
assets acquired. c.2)
    
    Merger with and into Former Nuevo Banco Suquía S.A.
      F - 90




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
    d)
    
    Acquisition of controlling interest in Banco del Tucumán S.A.
     Cash
    
    
    150,190Government and Private securities
    
    
    198,411Loans
    
    
    213,696Other assets
    
    
    102,053Tangible non-current assets
    
    
    23,312Intangible non-current assets  Mainly Customer related assets (8
 year weighted average useful life)
    
    
    76,883Total assets acquired
    
    
    764,545
  F - 91




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Deposits
    
    
    594,654Other liabilities (*)
    
    
    71,791Total liabilities assumed
    
    
    666,445Net assets
    
    
    98,100% acquired
    
    
    75
    %Net assets acquired
    
    
    73,575Purchase price
    
    
    45,961Negative Goodwill
    
    
    (27,614
    )(**)
 (*)
    
    Includes 1,567 of deferred tax liability.(**)
    
    The negative goodwill has been applied to reduce on a pro
rata basis the amounts assigned to the non-current intangible and tangible
assets acquired.    Additional interest acquired in2007
    
    
    2006Net assets
    
    
    174,713
    (*)
    
    
    144,256
    (*)% acquired
    
    
    10.09
    %
    
    
    4.84
    %Net assets acquired
    
    
    17,628
    
    
    
    6,982Purchase price
    
    
    9,709
    
    
    
    2,907Negative Goodwill
    
    
    (7,919
    )(**)
    
    
    (4,075
    )(**)
 (*)
    
    Includes 3,359 (liability) and 143 (asset) of deferred tax,
respectively.(**)
    
    The negative goodwills have been applied to reduce on a pro
rata basis the amounts assigned to the non-current intangible and tangible
assets acquired.  F - 92




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  Increase / (Decrease)Consolidated shareholders Equity as of
    
    
    Consolidated Net income YearDecember 31
    
    
    ended December 31,2008
    
    
    2007
    
    
    2006
    
    
    2008
    
    
    2007
    
    
    2006Deferred taxes, net of allowances
    
    
    (4,066
    )
    
    
    (411
    )
    
    
    (1,246
    )
    
    
    (3,655
    )
    
    
    4,194
    
    
    
    178Write off of tangible and
intangible assets as a result of
negative goodwill allocated
    
    
    3,339
    
    
    
    8,133
    
    
    
    9,945
    
    
    
    (4,794
    )
    
    
    (6,270
    )
    
    
    (2,255
    )Judgments due to Court decisions
related to foreign
currency-denominated deposit
    
    
    (2,038
    )
    
    
    (4,339
    )
    
    
    (7,510
    )
    
    
    2,301
    
    
    
    4,076
    
    
    
    2,651Other purchase price adjustments
    
    
    (2,888
    )
    
    
    (3,296
    )
    
    
    (633
    )
    
    
    408
    
    
    
    (2,469
    )
    
    
    (18
    )Total
    
    
    (5,653
    )
    
    
    87
    
    
    
    556
    
    
    
    (5,740
    )
    
    
    (469
    )
    
    
    556
 e)
    
    Acquisition of Nuevo Banco Bisel S.A.
      Cash
    
    
    263,317Government and Private securities
    
    
    501,667Loans
    
    
    892,162Other assets (*)
    
    
    217,087Tangible non-current assets (**)
    
    
    Intangible non-current assets (**)
    
    
    Total assets acquired
    
    
    1,874,233
  F - 93




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Deposits
    
    
    1,392,676Other liabilities
    
    
    411,782Total liabilities assumed
    
    
    1,804,458Minority interest
    
    
    8,561Net assets
    
    
    61,214% acquired
    
    
    100
    %Net assets acquired
    
    
    61,214Cash purchase price
    
    
    19,509Extraordinary gain
    
    
    (41,705
    )(**)
 (*)
    
    Includes 138,040 of deferred tax assets, net of allowances.(**)
    
    The negative goodwill has been applied to reduce on a pro
rata basis the amounts assigned to the non-current intangible (35,555), mainly
related to customers, and tangible assets (123,114) acquired. After reducing
to zero such assets, the remaining excess is considered an extraordinary gain.  Increase / (Decrease)Consolidated shareholders Equity
    
    
    Consolidated Net income Yearas of December 31
    
    
    ended December 31,2008
    
    
    2007
    
    
    2006
    
    
    2008
    
    
    2007
    
    
    2006Deferred taxes, net of allowances
    
    
    (8,721
    )
    
    
    68,919
    
    
    
    162,329
    
    
    
    (77,640
    )
    
    
    (93,893
    )
    
    
    24,772Minimum presume tax income
    
    
    
    
    
    
    
    
    
    
    18,490
    
    
    
    
    
    
    
    (18,490
    )
    
    
    5,196Loans  Non financial federal
government sector
    
    
    (48,833
    )
    
    
    (32,881
    )
    
    
    (15,685
    )
    
    
    (15,952
    )
    
    
    (17,196
    )
    
    
    717Loans to private sector
    
    
    (4,517
    )
    
    
    (1,595
    )
    
    
    (7,285
    )
    
    
    (2,922
    )
    
    
    5,690
    
    
    
    (7,129
    )Minority interest adjustment (*)
    
    
    59,740
    
    
    
    59,038
    
    
    
    57,736
    
    
    
    702
    
    
    
    1,302
    
    
    
    (346
    )Write off of tangible and
intangible assets as a result of
negative goodwill allocated
    
    
    (108,264
    )
    
    
    (123,815
    )
    
    
    (147,437
    )
    
    
    15,551
    
    
    
    23,622
    
    
    
    11,949Other purchase price adjustments
(**)
    
    
    (1,357
    )
    
    
    20,649
    
    
    
    7,155
    
    
    
    (22,006
    )
    
    
    14,874
    
    
    
    (2,458
    )Total
    
    
    (111,952
    )
    
    
    (9,685
    )
    
    
    75,303
    
    
    
    (102,267
    )
    
    
    (84,091
    )
    
    
    32,701
 (*)
    
    See also note 3.7.(**)
    
    See also note 35.22.  F - 94




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 f)
    
    Other
  35.8.
    
    Reporting on Comprehensive Income (loss)
   35.9.
    
    Restatement of financial statements in constant pesos
   35.10.
    
    Accounting for derivative instruments and hedging activities
   35.11.
    
    Foreign currency translation
    F - 95




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 35.12.
    
    Accounting for guarantees
     35.13.
    
    Earning Per Share
      2008
    
    
    2007
    
    
    2006Numerator:Net income before extraordinary gains under US GAAP
    
    
    628,243
    
    
    
    384,040
    
    
    
    357,959Extraordinary gains (see note 35.7.e))
    
    
    
    
    
    
    
    
    
    
    41,705Net income under US GAAP
    
    
    628,243
    
    
    
    384,040
    
    
    
    399,664Denominator:Common stock outstanding for the fiscal year (1)
    
    
    608,437,455
    
    
    
    683,943,437
    
    
    
    608,943,437Common stock issued (2)
    
    
    
    
    
    
    35,536
    
    
    
    75,000,000Weighted-average common shares outstanding for the year
    
    
    658,124,254
    
    
    
    683,952,394
    
    
    
    666,477,840Basic EPS before extraordinary gains under US GAAP  stated in pesos
    
    
    0.95
    
    
    
    0.56
    
    
    
    0.54Basic EPS for the extraordinary gains under US GAAP  stated in pesos
    
    
    
    
    
    
    
    
    
    
    0.06Total Basic EPS under US GAAP  stated in pesos
    
    
    0.95
    
    
    
    0.56
    
    
    
    0.60
 (1)
    
    Common stock of the Bank prior to the capital increases mentioned in
note 9.(2)
    
    Capital increases mentioned in note 9.  F - 96




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  35.14.
    
    Issuance and Offering Cost of Shares
      35.15.
    
    Corporate Bonds
 a)
    
    Issuance Cost of Corporate Bonds and Interest recognition
       b)
    
    Repurchased Own Corporate Bonds
   F - 97




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
     35.16.
    
    Foreclosed assets
    35.17.
    
    Set forth below are the significant adjustments to consolidated net income and
shareholders equity which would be required if US GAAP instead of Central Bank rules had
been applied:
 Increase / (decrease)Consolidated Net IncomeYears ended December 31,Ref.
    
    
    2008
    
    
    2007
    
    
    2006Net income in accordance with Central Bank rules
    
    
    
    
    
    
    660,050
    
    
    
    495,200
    
    
    
    424,340Income taxesDeferred taxes, net of allowances
    
    
    35.1.a
    )
    
    
    19,032
    
    
    
    24,900
    
    
    
    (94,936
    )Exposure to the Argentine public sector and private securities
Loans  Non-financial federal government sector
    
    
    35.2.a
    )
    
    
    19,678
    
    
    
    14,327
    
    
    
    513Secured Bonds
    
    
    35.2.b
    )
    
    
    11,735
    
    
    
    2,661
    
    
    
    31,653Other loans  Non-financial provincial government sector
    
    
    35.2.c
    )
    
    
    
    
    
    
    
    
    
    
    196Compensatory Bonds
    
    
    35.2.d
    )
    
    
    
    
    
    
    
    
    
    
    40,736Instrument issued by Central Bank of Argentina and other unlisted securities
    
    
    35.2.e
    )
    
    
    (11,125
    )
    
    
    18,608
    
    
    
    (15,870
    )Holdings in special investment accounts
    
    
    35.2.f
    )
    
    
    7,404
    
    
    
    
    
    
    
    Loan origination fees
    
    
    35.3
    
    
    
    (13,880
    )
    
    
    (3,071
    )
    
    
    (5,609
    )
  F - 98




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Increase / (decrease)Consolidated Net IncomeYears ended December 31,Ref.
    
    
    2008
    
    
    2007
    
    
    2006Allowance for loan lossesCredit Card Loans
    
    
    35.4.b
    )
    
    
    (2,297
    )
    
    
    (2,367
    )
    
    
    (733
    )Impaired Loans  Non Financial Private Sector and residents abroad
    
    
    35.4.c
    )
    
    
    2,726
    
    
    
    (8,226
    )
    
    
    (3,124
    )Interest recognition  non accrual loans
    
    
    35.4.d
    )
    
    
    (1,856
    )
    
    
    (114
    )
    
    
    1,868Intangible assetsJudgments due to court decisions related to foreign currency 
denominated deposits
    
    
    35.5.a
    )
    
    
    25,038
    
    
    
    (45,916
    )
    
    
    (20,240
    )Software costs
    
    
    35.5.b
    )
    
    
    1,034
    
    
    
    (23,952
    )
    
    
    (2,980
    )Organizational costs
    
    
    35.5.c
    )
    
    
    365
    
    
    
    (7,153
    )
    
    
    378Vacation accrual
    
    
    35.6
    
    
    
    (20,420
    )
    
    
    (19,175
    )
    
    
    (3,365
    )Business combinationAcquisition of controlling interest in former Banco Bansud S.A.
    
    
    35.7.a
    )
    
    
    2,335
    
    
    
    4,630
    
    
    
    (68,483
    )Merger with and into former Banco Bansud S.A.  a downstream merger
    
    
    35.7.b
    )
    
    
    (386
    )
    
    
    (527
    )
    
    
    (527
    )Acquisition of Nuevo Banco Suquía S.A.- Merger with and into
Former Nuevo Banco Suquía S.A.
    
    
    35.7.c
    )
    
    
    2,349
    
    
    
    2,325
    
    
    
    2,306Acquisition of Banco de Tucumán S.A.
    
    
    35.7.d
    )
    
    
    (5,740
    )
    
    
    (469
    )
    
    
    556Acquisition of Nuevo Banco Bisel S.A.
    
    
    35.7.e
    )
    
    
    (102,267
    )
    
    
    (84,091
    )
    
    
    32,701Other
    
    
    35.7.f
    )
    
    
    523
    
    
    
    1,336
    
    
    
    (272
    )Derivative instruments
    
    
    35.10
    
    
    
    4,754
    
    
    
    2,446
    
    
    
    Foreign currency translation
    
    
    35.11
    
    
    
    8,859
    
    
    
    2,956
    
    
    
    1,294Issuance and Offering Cost of Shares
    
    
    35.14
    
    
    
    
    
    
    
    
    
    
    
    15,664Corporate BondsIssuance Cost of Corporate Bonds and Interest recognition
    
    
    35.15.a
    )
    
    
    (5,189
    )
    
    
    8,112
    
    
    
    10,288Repurchased Own Corporated Bonds
    
    
    35.15.b
    )
    
    
    27,633
    
    
    
    
    
    
    
    Foreclosed assets
    
    
    35.16
    
    
    
    (2,112
    )
    
    
    1,600
    
    
    
    11,605Net income before extraordinary items in accordance with US GAAP
    
    
    
    
    
    
    628,243
    
    
    
    384,040
    
    
    
    357,959Extraordinary Gain (see note 35.7.e))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,705Net income in accordance with US GAAP
    
    
    
    
    
    
    628,243
    
    
    
    384,040
    
    
    
    399,664
 2008
    
    
    2007
    
    
    2006Comprehensive incomeNet income in accordance with US GAAP
    
    
    628,243
    
    
    
    384,040
    
    
    
    399,664Other comprehensive income, net of tax:
    
    
    (78,246
    )
    
    
    (15,475
    )
    
    
    (18,049
    )Total comprehensive income, net in accordance with US GAAP
    
    
    549,997
    
    
    
    368,565
    
    
    
    381,615Earning per share before extraordinary gains in accordance with US GAAP  stated in pesos
    
    
    0.95
    
    
    
    0.56
    
    
    
    0.54Earning per share for extraordinary gains in accordance with US GAAP  stated in pesos
    
    
    
    
    
    
    
    
    
    
    0.06Total earning per share in accordance with US GAAP  stated in pesos
    
    
    0.95
    
    
    
    0.56
    
    
    
    0.60Weighted average number of shares Outstanding (in thousands)
    
    
    658,124
    
    
    
    683,952
    
    
    
    666,478
  F - 99




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Increase / (decrease)Consolidated Shareholders Equityas of December 31,Ref.
    
    
    2008
    
    
    2007
    
    
    2006Shareholders equity in accordance with Central Bank rules
    
    
    
    
    
    
    2,816,597
    
    
    
    2,707,706
    
    
    
    2,315,097Income taxesDeferred taxes, net of allowances
    
    
    35.1.a
    )
    
    
    115,733
    
    
    
    54,569
    
    
    
    21,819Exposure to the Argentine public sector and private securities
Loans  Non-financial federal government sector
    
    
    35.2.a
    )
    
    
    (236,487
    )
    
    
    (256,165
    )
    
    
    (270,492
    )Secured Bonds
    
    
    35.2.b
    )
    
    
    (12,365
    )
    
    
    
    
    
    
    Instruments issued by Central Bank of Argentina and other unlisted securities
    
    
    35.2.e
    )
    
    
    (62,049
    )
    
    
    1,817
    
    
    
    20Holdings in special investment accounts
    
    
    35.2.f
    )
    
    
    (27,274
    )
    
    
    
    
    
    
    Loan origination fees
    
    
    35.3
    
    
    
    (34,043
    )
    
    
    (20,163
    )
    
    
    (17,092
    )Allowance for loan lossesCredit Card Loans
    
    
    35.4.b
    )
    
    
    (5,897
    )
    
    
    (3,600
    )
    
    
    (1,233
    )Impaired Loans  Non Financial Private Sector and residents abroad
    
    
    35.4.c
    )
    
    
    (10,013
    )
    
    
    (12,739
    )
    
    
    (4,513
    )Interest recognition  non accrual loans
    
    
    35.4.d
    )
    
    
    (4,347
    )
    
    
    (2,491
    )
    
    
    (2,377
    )Intangible assetsJudgments due to court decisions related to foreign currency  denominated
deposits
    
    
    35.5.a
    )
    
    
    (83,750
    )
    
    
    (108,788
    )
    
    
    (62,872
    )Software costs
    
    
    35.5.b
    )
    
    
    (37,982
    )
    
    
    (39,016
    )
    
    
    (15,064
    )Organizational costs
    
    
    35.5.c
    )
    
    
    (8,291
    )
    
    
    (8,656
    )
    
    
    (1,503
    )Vacation accrual
    
    
    35.6
    
    
    
    (59,765
    )
    
    
    (39,345
    )
    
    
    (20,170
    )Business combinationAcquisition of controlling interest in former Banco Bansud S.A.
    
    
    35.7.a
    )
    
    
    (9,609
    )
    
    
    (11,944
    )
    
    
    (16,574
    )Merger with and into former Banco Bansud S.A.  a downstream merger
    
    
    35.7.b
    )
    
    
    (6,621
    )
    
    
    (6,235
    )
    
    
    (5,708
    )Acquisition of Nuevo Banco Suquía S.A.  Merger with and into Former Nuevo
Banco Suquía S.A.
    
    
    35.7.c
    )
    
    
    (46,296
    )
    
    
    (48,645
    )
    
    
    (51,115
    )Acquisition of Banco de Tucumán S.A.
    
    
    35.7.d
    )
    
    
    (5,653
    )
    
    
    87
    
    
    
    556Acquisition of Nuevo Banco Bisel S.A.
    
    
    35.7.e
    )
    
    
    (111,952
    )
    
    
    (9,685
    )
    
    
    75,303Other
    
    
    35.7.f
    )
    
    
    (7,874
    )
    
    
    (8,397
    )
    
    
    (9,733
    )Derivative instruments
    
    
    35.10
    
    
    
    7,200
    
    
    
    2,446
    
    
    
    Corporate BondsIssuance Cost of Corporate Bonds and Interest recognition
    
    
    35.15.a
    )
    
    
    13,211
    
    
    
    18,400
    
    
    
    10,288Repurchased Own Corporate Bonds
    
    
    35.15.b
    )
    
    
    27,633
    
    
    
    
    
    
    
    Foreclosed assets
    
    
    35.16
    
    
    
    11,093
    
    
    
    13,205
    
    
    
    11,605Shareholders equity in accordance with
US GAAP (1)
    
    
    
    
    
    
    2,221,199
    
    
    
    2,222,361
    
    
    
    1,956,242
 (1)
    
    Includes the effects of other comprehensive income.  F - 100




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 35.18.
    
    Set forth below are the accumulated other comprehensive income (loss) balances, as of
December 31, 2008, 2007 and 2006  net of related income tax effects:
 AccumulatedUnrealized
    
    
    OtherForeign
    
    
    Gains/
    
    
    ComprehensiveCurrency
    
    
    (losses) on
    
    
    Income /Items (1)
    
    
    securities (2)
    
    
    (Loss)Balances as of December 31, 2005
    
    
    12,069
    
    
    
    35,134
    
    
    
    47,203Current-fiscal year change
    
    
    (1,294
    )
    
    
    (26,474
    )
    
    
    (27,768
    )Tax effects
    
    
    453
    
    
    
    9,266
    
    
    
    9,719Balances as of December 31, 2006
    
    
    11,228
    
    
    
    17,926
    
    
    
    29,154Current-fiscal year change
    
    
    (2,956
    )
    
    
    (20,852
    )
    
    
    (23,808
    )Tax effects
    
    
    1,035
    
    
    
    7,298
    
    
    
    8,333Balances as of December 31, 2007
    
    
    9,307
    
    
    
    4,372
    
    
    
    13,679Current-fiscal year change
    
    
    (8,859
    )
    
    
    (111,519
    )
    
    
    (120,378
    )Tax effects
    
    
    3,100
    
    
    
    39,032
    
    
    
    42,132Balances as of December 31, 2008
    
    
    3,548
    
    
    
    (68,115
    )
    
    
    (64,567
    )
 (1)
    
    See note 35.11.(2)
    
    See note 35.2. 35.19.
    
    Statement of Cash flows
     F - 101




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  Year ended December 31,2008
    
    
    2007
    
    2006Causes of changes in cash and cash equivalentsCash provided by (used in) operating activitiesInterest received on loans, leases and investments
    
    
    2,904,605
    
    
    
    1,681,340
    
    
    
    1,132,778Fees and commissions received
    
    
    882,354
    
    
    
    658,863
    
    
    
    452,627Other sources of cash
    
    
    28,909
    
    
    
    23,884
    
    
    
    148,585Less:Interest paid
    
    
    (1,196,698
    )
    
    
    (701,232
    )
    
    
    (410,354
    )Fees and commissions paid
    
    
    (168,091
    )
    
    
    (146,606
    )
    
    
    (92,069
    )Cash paid to suppliers and employees
    
    
    (1,120,663
    )
    
    
    (873,034
    )
    
    
    (599,435
    )(Increase) / Decrease from intangible assets
    
    
    (61,991
    )
    
    
    (91,883
    )
    
    
    53,422(Increase) / Decrease in other receivables from
financial intermediation and other assets
    
    
    (358,736
    )
    
    
    (541,080
    )
    
    
    474,123Other uses of cash
    
    
    (111,360
    )
    
    
    (99,335
    )
    
    
    (128,830
    )Net cash provided by (used in) operating activities
    
    
    798,329
    
    
    
    (89,083
    )
    
    
    1,030,847Plus:Cash provided by (used in) investing activitiesProceeds from sales of trading and investment
securities available for sale
    
    
    27,183,142
    
    
    
    18,038,585
    
    
    
    22,931,533Purchases of trading and investment securities
available for sale
    
    
    (27,534,821
    )
    
    
    (18,396,607
    )
    
    
    (22,444,125
    )Increase in loans and leases, net
    
    
    (1,562,881
    )
    
    
    (3,674,912
    )
    
    
    (2,145,416
    )Proceeds from sale of Bank premises and equipment
    
    
    9,694
    
    
    
    3,808
    
    
    
    68,190Purchases of Bank premises and equipment
    
    
    (82,513
    )
    
    
    (81,469
    )
    
    
    (13,441
    )Purchase of Banco del Tucumán S.A. and Nuevo
Banco Bisel S.A., net of cash acquired
    
    
    
    
    
    
    
    
    
    
    411,977Net cash used in investing activities
    
    
    (1,987,379
    )
    
    
    (4,110,595
    )
    
    
    (1,191,282
    )Cash provided by (used in) financing activitiesIncrease in deposits, net
    
    
    2,258,332
    
    
    
    3,583,214
    
    
    
    1,752,639Increase in long term borrowings
    
    
    
    
    
    
    734,767
    
    
    
    447,253Decrease in long term borrowings
    
    
    (63,529
    )
    
    
    
    
    
    
    (Decrease) / Increase in other short term
liabilities, net
    
    
    (48,114
    )
    
    
    474,624
    
    
    
    (984,613
    )Capital increase
    
    
    
    
    
    
    182
    
    
    
    451,330Own shares reacquired
    
    
    (380,164
    )
    
    
    
    
    
    
    Cash dividends paid
    
    
    (171,004
    )
    
    
    (102,591
    )
    
    
    (68,395
    )Net cash provided by financing activities
    
    
    1,595,521
    
    
    
    4,690,196
    
    
    
    1,598,214Increase in cash and cash equivalents
    
    
    406,471
    
    
    
    490,518
    
    
    
    1,437,779Cash at the beginning of fiscal year
    
    
    3,117,426
    
    
    
    2,626,908
    
    
    
    1,189,129Cash at the end of fiscal year
    
    
    3,523,897
    
    
    
    3,117,426
    
    
    
    2,626,908
  F - 102




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  Year ended December 31,2008
    
    
    2007
    
    
    2006 (1)Net income for the fiscal year
    
    
    660,050
    
    
    
    495,200
    
    
    
    424,340Adjustments to reconcile net income to net cash from
operating activities:Amortization and depreciation
    
    
    116,199
    
    
    
    106,077
    
    
    
    68,534Provision for loan losses and special reserves, net of
reversals
    
    
    290,778
    
    
    
    40,388
    
    
    
    63,038Net income from government and private securities
    
    
    (72,335
    )
    
    
    (30,611
    )
    
    
    (11,936
    )Foreign exchange differences
    
    
    (143,094
    )
    
    
    (48,823
    )
    
    
    (37,857
    )Equity gain of unconsolidated subsidiaries
    
    
    25,847
    
    
    
    890
    
    
    
    289(Increase) / Decrease from intangible assets
    
    
    (61,991
    )
    
    
    (91,883
    )
    
    
    53,422Non-computable VAT credit
    
    
    23,037
    
    
    
    21,066
    
    
    
    11,458Valuation allowance of loans to the government sector 
Communiqué A 3,911
    
    
    66,125
    
    
    
    54,274
    
    
    
    5,595Income tax
    
    
    168,862
    
    
    
    15,384
    
    
    
    42,919Increase / (Decrease) in other receivables from financial
intermediation and other assets
    
    
    (358,736
    )
    
    
    (541,080
    )
    
    
    474,123Net (Increase) / Decrease in interest receivable and
payable and other accrued income and expenses
    
    
    (12,798
    )
    
    
    (6,607
    )
    
    
    39,620Minority interest in subsidiaries
    
    
    3,354
    
    
    
    2,083
    
    
    
    3,178Net Decrease / (Increase) in other sources or uses of cash
    
    
    93,031
    
    
    
    (105,441
    )
    
    
    (105,876
    )Net cash provided by (used in) operating activities
    
    
    798,329
    
    
    
    (89,083
    )
    
    
    1,030,847
 (1)
    
    See also note 4.2. 35.20.
    
    Forward transactions pending settlement
     35.21.
    
    Fair value of financial instruments
   F - 103




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Fair Value Measurements
    a)
    
    Quoted prices for similar assets or liabilities in
active markets;
 b)
    
    Quoted prices for identical or similar assets or
liabilities in less-active markets;
 c)
    
    Pricing models whose inputs are observable for
substantially the full term of the asset or liability; and
 d)
    
    Pricing models whose inputs are derived principally
from or corroborated by observable market data through correlation or
other means for substantially the full term of the asset or liability.
    Fair value measurements on a recurring basis as ofDecember 31, 2008DESCRIPTION
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TOTALASSETSGovernment and private securities
    
    
    1,590,686
    
    
    
    3,093,907
    (*)
    
    
    
    
    
    
    4,684,593Other receivables from financial
intermediationForward transactions
pending settlement
    
    
    52,345
    
    
    
    1,226
    
    
    
    
    
    
    
    53,571Unlisted corporate Bonds
    
    
    
    
    
    
    48,696
    
    
    
    
    
    
    
    48,696Other receivables in securities
    
    
    4,411
    
    
    
    
    
    
    
    
    
    
    
    4,411LIABILITIESOther liabilities from
financial intermediationForward transactions
pending settlement
    
    
    254,905
    
    
    
    426,390
    (*)
    
    
    
    
    
    
    681,295Derivative instruments
    
    
    5,859
    
    
    
    
    
    
    
    7,200
    
    
    
    13,059
 (*)
    
    Mainly includes instruments issued by Central Bank of Argentina with
less than one year maturity.  F - 104




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
   Fair Value Measurements Using significant unobservable inputs (Level 3)
 Derivatives
    
    
    TotalBeginning balance
    
    
    2,446
    
    
    
    2,446Total gains or losses (realized/unrealized)Included in earnings (or changes in net assets)
    
    
    4,754
    
    
    
    4,754Ending balance
    
    
    7,200
    
    
    
    7,200
 Fair Value Option
  Fair Value Disclosures
         F - 105




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
   As of December 31,2008
    
    
    2007Carrying
    
    
    Estimated
    
    
    Carrying
    
    
    EstimatedAmount
    
    
    Fair Value
    
    
    Amount
    
    
    Fair ValueFINANCIAL ASSETSCash
    
    
    3,523,897
    
    
    
    3,523,897
    
    
    
    3,117,426
    
    
    
    3,117,426Government and private securities
    
    
    4,779,299
    
    
    
    4,684,593
    
    
    
    3,950,725
    
    
    
    3,952,882Loans
    
    
    11,279,958
    
    
    
    10,510,340
    
    
    
    10,009,417
    
    
    
    9,889,754Other receivables from financial intermediation
    
    
    1,454,065
    
    
    
    1,445,109
    
    
    
    1,226,295
    
    
    
    1,265,009Assets subject to financial leases
    
    
    355,390
    
    
    
    312,322
    
    
    
    367,968
    
    
    
    357,395Other receivables
    
    
    251,789
    
    
    
    255,294
    
    
    
    254,280
    
    
    
    253,84621,644,398
    
    
    
    20,731,555
    
    
    
    18,926,111
    
    
    
    18,836,312FINANCIAL LIABILITIESDeposits
    
    
    15,828,357
    
    
    
    15,809,588
    
    
    
    13,591,149
    
    
    
    13,594,055Other liabilities from financial intermediation
    
    
    2,714,944
    
    
    
    2,174,088
    
    
    
    2,571,850
    
    
    
    2,322,015Other Liabilities
    
    
    442,702
    
    
    
    442,702
    
    
    
    241,215
    
    
    
    241,215Subordinated Corporate Bonds
    
    
    521,681
    
    
    
    301,947
    
    
    
    490,695
    
    
    
    500,38219,507,684
    
    
    
    18,728,325
    
    
    
    16,894,909
    
    
    
    16,657,667
   35.22.
    
    Transfers of financial assets
    F - 106




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  1)
    
    Retained Interests in the Trusts
   NetAmortized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gain
    
    
    ValueNBB Personales II
    
    
    10,529
    
    
    
    820
    
    
    
    11,349NBB Agroprendas I
    
    
    7,353
    
    
    
    560
    
    
    
    7,913Total
    
    
    17,882
    
    
    
    1,380
    
    
    
    19,262
 2)
    
    Transfers of financial assets not qualifying for sale accounting
   35.23.
    
    Joint venture
    35.24.
    
    Items in process of collection
    F - 107




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 35.25.
    
    Acceptances
  35.26.
    
    Variable Interest Entities and other trusts
      a)
    
    Bisel Trust
  b)
    
    Tucumán Trust
    c)
    
    San Isidro Trust
   F - 108




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 d)
    
    Luján Trust
    e)
    
    Godoy Cruz Trust.
  f)
    
    Onext
    35.27.
    
    Parent only financial statements
  BALANCE SHEET (PARENT COMPANY ONLY)
 2008
    
    
    2007 (1)ASSETSCASHCash on hand
    
    
    741,774
    
    
    
    547,966Due from banks and correspondentsCentral Bank of Argentina
    
    
    1,676,844
    
    
    
    1,597,354Local Other
    
    
    8,985
    
    
    
    4,123Foreign
    
    
    232,799
    
    
    
    159,713Other
    
    
    216
    
    
    
    1852,660,618
    
    
    
    2,309,341
  F - 109




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2008
    
    
    2007 (1)GOVERNMENT AND PRIVATE SECURITIESHolding in investment accounts
    
    
    130,694
    
    
    
    Holdings for trading or financial intermediation
    
    
    219,135
    
    
    
    236,663Unlisted government securities
    
    
    25,932
    
    
    
    16Instruments issued by the Central Bank of Argentina
    
    
    3,223,995
    
    
    
    2,592,135Less: Allowances
    
    
    (27
    )
    
    
    (27
    )3,599,729
    
    
    
    2,828,787LOANSTo the non-financial government sector
    
    
    568,459
    
    
    
    554,527To the financial sectorInterfinancing (granted Call)
    
    
    77,391
    
    
    
    65,760Other financing to Argentine financial institutions
    
    
    37,836
    
    
    
    94,496Accrued interest, adjustments, foreign exchange and quoted price differences receivables
    
    
    576
    
    
    
    1,415To the non-financial private sector and foreign residentsOverdrafts
    
    
    1,255,299
    
    
    
    1,223,618Documents
    
    
    878,379
    
    
    
    725,157Mortgage loans
    
    
    593,451
    
    
    
    490,515Pledged loans
    
    
    231,763
    
    
    
    234,766Personal loans
    
    
    2,805,422
    
    
    
    2,380,854Credit cards
    
    
    593,524
    
    
    
    477,612Other
    
    
    1,707,892
    
    
    
    1,473,687Accrued interest, adjustments, foreign exchange and quoted price differences receivables
    
    
    148,245
    
    
    
    113,598Less: Unearned discount
    
    
    (24,335
    )
    
    
    (19,666
    )Less: Allowances
    
    
    (332,730
    )
    
    
    (173,901
    )8,541,172
    
    
    
    7,642,438OTHER RECEIVABLES FROM FINANCIAL INTERMEDIATIONCentral Bank of Argentina
    
    
    293,097
    
    
    
    156,227Amounts receivable from spot and forward sales pending settlement
    
    
    954,226
    
    
    
    737,102Securities and foreign currency receivable from spot and forward purchases pending
settlement
    
    
    30,799
    
    
    
    110,180Unlisted corporate bonds
    
    
    13,621
    
    
    
    448Receivables from forward transactions without delivery of underlying asset
    
    
    105
    
    
    
    Other receivables not covered by debtors classification standards
    
    
    378,017
    
    
    
    325,096Other receivables covered by debtor classification standards
    
    
    48,541
    
    
    
    53,898Less: Allowances
    
    
    (52,836
    )
    
    
    (29,893
    )1,665,570
    
    
    
    1,353,058ASSETS SUBJECT TO FINANCIAL LEASESAssets subject to financial leases
    
    
    286,421
    
    
    
    301,317Less: Allowances
    
    
    (4,392
    )
    
    
    (3,986
    )282,029
    
    
    
    297,331INVESTMENTS IN OTHER COMPANIESIn financial institutions
    
    
    1,622,256
    
    
    
    1,336,016Other
    
    
    36,540
    
    
    
    35,152Less: Allowances
    
    
    (247
    )
    
    
    (697
    )1,658,549
    
    
    
    1,370,471
  F - 110




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2008
    
    
    2007 (1)OTHER RECEIVABLESReceivables from sale of assets
    
    
    35,044
    
    
    
    15,082Minimum presumed income tax  Tax credit
    
    
    
    
    
    
    23,287Other
    
    
    154,539
    
    
    
    172,168Accrued interest and adjustments receivables on receivable from sale of assets
    
    
    2,196
    
    
    
    145Other accrued interest and adjustments receivable
    
    
    
    
    
    
    58Less: Allowances
    
    
    (11,575
    )
    
    
    (15,215
    )180,204
    
    
    
    195,525BANK PREMISES AND EQUIPMENT, NET
    
    
    337,507
    
    
    
    293,472OTHER ASSETS
    
    
    122,102
    
    
    
    178,829INTANGIBLE ASSETSGoodwill
    
    
    63,477
    
    
    
    71,916Organization and development costs, including amparos
    
    
    103,028
    
    
    
    96,435166,505
    
    
    
    168,351ITEMS PENDING ALLOCATION
    
    
    2,512
    
    
    
    1,872TOTAL ASSETS
    
    
    19,216,497
    
    
    
    16,639,475LIABILITIESDEPOSITSFrom the non-financial government sector
    
    
    3,434,813
    
    
    
    1,327,865From the financial sector
    
    
    18,780
    
    
    
    10,006From the non-financial private sector and foreign residentsChecking accounts
    
    
    1,811,996
    
    
    
    1,834,372Savings accounts
    
    
    2,249,962
    
    
    
    2,258,968Time deposits
    
    
    4,698,444
    
    
    
    4,647,858Investment accounts
    
    
    155,762
    
    
    
    63,063Other
    
    
    257,706
    
    
    
    295,401Accrued interest, adjustments, foreign exchange and quoted price differences payables
    
    
    46,008
    
    
    
    51,86512,673,471
    
    
    
    10,489,398OTHER LIABILITIES FROM FINANCIAL INTERMEDIATIONCentral Bank of Argentina  Other
    
    
    160,758
    
    
    
    184,594Banks and international institutions
    
    
    213,095
    
    
    
    160,846Non-subordinated Corporate Bonds
    
    
    708,354
    
    
    
    780,590Amounts payable for spot and forward purchases pending settlement
    
    
    30,463
    
    
    
    108,646Securities and foreign currency to be delivered under spot and forward sales pending
settlement
    
    
    1,108,066
    
    
    
    869,843Financing received from Argentine financial institutionsInterfinancing  (received call)
    
    
    
    
    
    
    49,225Other financing received from Argentine financial institutions
    
    
    24,139
    
    
    
    90,648Accrued interest payables
    
    
    
    
    
    
    54Forward transactions amounts pending settlement without delivery of underlying asset
    
    
    5,949
    
    
    
    
  F - 111




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2008
    
    
    2007 (1)OTHER LIABILITIES FROM FINANCIAL INTERMEDIATION (Contd.)Other
    
    
    515,761
    
    
    
    397,733Accrued interest, adjustments, foreign exchange and quoted price differences payables
    
    
    49,679
    
    
    
    47,3992,816,264
    
    
    
    2,689,578OTHER LIABILITIESDividends payables
    
    
    
    
    
    
    1Other
    
    
    325,545
    
    
    
    183,657325,545
    
    
    
    183,658PROVISIONS
    
    
    61,266
    
    
    
    77,029SUBORDINATED CORPORATE BONDS
    
    
    521,681
    
    
    
    490,695ITEMS PENDING ALLOCATION
    
    
    1,673
    
    
    
    1,411TOTAL LIABILITIES
    
    
    16,399,900
    
    
    
    13,931,769SHAREHOLDERS EQUITY
    
    
    2,816,597
    
    
    
    2,707,706TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    
    19,216,497
    
    
    
    16,639,475MEMORANDUM ACCOUNTSDEBIT-BALANCE ACCOUNTS
    
    
    10,112,946
    
    
    
    7,291,099Contingent
    
    
    2,694,310
    
    
    
    2,568,102Guarantees received
    
    
    2,476,416
    
    
    
    2,284,111Other not covered by debtors classification standards
    
    
    346
    
    
    
    445Contingent debit-balance contra accounts
    
    
    217,548
    
    
    
    283,546Control
    
    
    4,157,114
    
    
    
    4,153,584Receivables classified as irrecoverable
    
    
    637,686
    
    
    
    636,624Other
    
    
    3,333,968
    
    
    
    3,394,966Control debit-balance contra accounts
    
    
    185,460
    
    
    
    121,994Derivatives
    
    
    3,261,522
    
    
    
    569,413Notional value of put options taken
    
    
    24,349
    
    
    
    Notional value of forward transactions without delivery of underlying asset
    
    
    1,853,588
    
    
    
    331,411Interest rate swap
    
    
    31,970
    
    
    
    29,388Derivatives debit-balance contra accounts
    
    
    1,351,615
    
    
    
    208,614
  F - 112




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2008
    
    
    2007 (1)CREDIT BALANCE ACCOUNTS
    
    
    10,112,946
    
    
    
    7,291,099Contingent
    
    
    2,694,310
    
    
    
    2,568,102Other guarantees provided covered by debtors classification standards
    
    
    84,135
    
    
    
    114,827Other guarantees provided not covered by debtors classification standards
    
    
    49,876
    
    
    
    49,641Other covered by debtors classification standards
    
    
    83,537
    
    
    
    119,078Contingent credit-balance contra accounts
    
    
    2,476,762
    
    
    
    2,284,556Control
    
    
    4,157,114
    
    
    
    4,153,584Checks to be credited
    
    
    185,460
    
    
    
    121,994Control credit-balance contra accounts
    
    
    3,971,654
    
    
    
    4,031,590Derivatives
    
    
    3,261,522
    
    
    
    569,413Notional value of put options sold
    
    
    99,797
    
    
    
    113,776Notional value of forward transactions without delivery of underlying asset
    
    
    1,251,818
    
    
    
    94,838Derivatives credit-balance contra accounts
    
    
    1,909,907
    
    
    
    360,799STATEMENTS OF INCOME (PARENT ONLY)
 2008
    
    
    2007 (1)
    
    
    2006 (1)FINANCIAL INCOMEInterest on cash and due from banks
    
    
    3,338
    
    
    
    11,536
    
    
    
    5,871Interest on loans to the financial sector
    
    
    15,928
    
    
    
    30,277
    
    
    
    13,644Interest on overdrafts
    
    
    300,312
    
    
    
    146,630
    
    
    
    96,222Interest on documents
    
    
    105,100
    
    
    
    59,695
    
    
    
    42,823Interest on mortgage loans
    
    
    78,082
    
    
    
    55,380
    
    
    
    44,733Interest on pledged loans
    
    
    41,576
    
    
    
    38,213
    
    
    
    39,427Interest on credit card loans
    
    
    85,016
    
    
    
    44,371
    
    
    
    27,992Interest on other loans
    
    
    786,316
    
    
    
    441,796
    
    
    
    223,333Interest on other receivables from financial intermediation
    
    
    12,181
    
    
    
    14,990
    
    
    
    13,876Income from government and private securities, net
    
    
    427,105
    
    
    
    290,509
    
    
    
    255,111Income from guaranteed loans  Presidential Decree 1,387/01
    
    
    27,130
    
    
    
    25,965
    
    
    
    26,656CER (Benchmark Stabilization Coefficient) adjustment
    
    
    51,905
    
    
    
    60,076
    
    
    
    76,928CVS (Salary Variation Coefficient) adjustment
    
    
    817
    
    
    
    1,603
    
    
    
    1,944Difference in quoted prices of gold and foreign currency
    
    
    98,347
    
    
    
    40,987
    
    
    
    36,217Other
    
    
    199,954
    
    
    
    128,459
    
    
    
    67,6252,233,107
    
    
    
    1,390,487
    
    
    
    972,402
  F - 113




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2008
    
    
    2007 (1)
    
    
    2006 (1)FINANCIAL EXPENSEInterest on checking accounts
    
    
    14,064
    
    
    
    16,335
    
    
    
    8,092Interest on savings accounts
    
    
    11,775
    
    
    
    8,993
    
    
    
    5,976Interest on time deposits
    
    
    798,833
    
    
    
    371,664
    
    
    
    197,710Interest on interfinancing received loans (received call)
    
    
    4,007
    
    
    
    4,620
    
    
    
    780Interest on other financing from financial institutions
    
    
    28
    
    
    
    130
    
    
    
    172Interest on other liabilities from financial intermediation
    
    
    90,266
    
    
    
    70,606
    
    
    
    14,386Interest on subordinated bonds
    
    
    47,523
    
    
    
    49,858
    
    
    
    2,017Other interest
    
    
    5,588
    
    
    
    6,131
    
    
    
    10,426CER adjustment
    
    
    19,647
    
    
    
    24,953
    
    
    
    46,633Contribution to Deposit Guarantee Fund
    
    
    20,655
    
    
    
    15,939
    
    
    
    10,968Net loss from options
    
    
    
    
    
    
    
    
    
    
    284Other
    
    
    114,389
    
    
    
    90,196
    
    
    
    44,9081,126,775
    
    
    
    659,425
    
    
    
    342,352GROSS INTERMEDIATION MARGIN  GAIN
    
    
    1,106,332
    
    
    
    731,062
    
    
    
    630,050PROVISION FOR LOAN LOSSES
    
    
    224,789
    
    
    
    71,045
    
    
    
    48,686SERVICE-CHARGE INCOMERelated to lending transactions
    
    
    42,509
    
    
    
    36,049
    
    
    
    30,032Related to deposits
    
    
    427,790
    
    
    
    297,491
    
    
    
    224,583Other fees
    
    
    20,093
    
    
    
    19,394
    
    
    
    20,499Other
    
    
    149,884
    
    
    
    128,261
    
    
    
    102,755640,276
    
    
    
    481,195
    
    
    
    377,869SERVICE-CHARGE EXPENSEFees
    
    
    37,787
    
    
    
    32,871
    
    
    
    29,323Other
    
    
    94,520
    
    
    
    88,898
    
    
    
    53,913132,307
    
    
    
    121,769
    
    
    
    83,236ADMINISTRATIVE EXPENSESPersonnel expenses
    
    
    536,210
    
    
    
    396,346
    
    
    
    323,913Directors and statutory auditors fees
    
    
    19,984
    
    
    
    31,932
    
    
    
    12,773Other professional fees
    
    
    39,099
    
    
    
    31,307
    
    
    
    33,527Advertising and publicity
    
    
    48,812
    
    
    
    45,590
    
    
    
    29,715Taxes
    
    
    8,085
    
    
    
    6,145
    
    
    
    6,044Depreciation of equipment
    
    
    41,124
    
    
    
    31,914
    
    
    
    23,604Amortization of organization costs
    
    
    21,203
    
    
    
    15,553
    
    
    
    12,290Other operating expenses
    
    
    114,978
    
    
    
    99,975
    
    
    
    85,126Other
    
    
    16,635
    
    
    
    16,424
    
    
    
    15,271846,130
    
    
    
    675,186
    
    
    
    542,263NET INCOME FROM FINANCIAL INTERMEDIATION
    
    
    543,382
    
    
    
    344,257
    
    
    
    333,734OTHER INCOMEIncome from long-term investments
    
    
    316,742
    
    
    
    232,277
    
    
    
    84,298Penalty interest
    
    
    12,862
    
    
    
    6,706
    
    
    
    5,254Recovered loans and allowances reversed
    
    
    62,497
    
    
    
    69,726
    
    
    
    162,840CER adjustments
    
    
    14
    
    
    
    104
    
    
    
    246Other
    
    
    48,323
    
    
    
    32,518
    
    
    
    32,493440,438
    
    
    
    341,331
    
    
    
    285,131
  F - 114




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2008
    
    
    2007 (1)
    
    
    2006 (1)OTHER EXPENSEPenalty interest and charges payable to Central Bank of Argentina
    
    
    19
    
    
    
    36
    
    
    
    24Charge for other-receivables uncollectibility and other allowances
    
    
    29,791
    
    
    
    6,767
    
    
    
    20,649Amortization of differences from deposits dollarization
    
    
    17,060
    
    
    
    19,278
    
    
    
    15,687Depreciation and loss of other assets
    
    
    1,833
    
    
    
    4,922
    
    
    
    3,398Goodwill amortization
    
    
    8,439
    
    
    
    9,250
    
    
    
    4,766Other
    
    
    64,624
    
    
    
    69,415
    
    
    
    78,001121,766
    
    
    
    109,668
    
    
    
    122,525NET INCOME BEFORE INCOME TAX
    
    
    862,054
    
    
    
    575,920
    
    
    
    496,340INCOME TAX
    
    
    202,004
    
    
    
    80,720
    
    
    
    72,000NET INCOME FOR THE FISCAL YEAR
    
    
    660,050
    
    
    
    495,200
    
    
    
    424,340
 (1)
    
    See note 4.2. STATEMENTS OF CASH FLOWS (PARENT ONLY)
 2008
    
    
    2007 (1)Changes in cash and cash equivalentsCash and cash equivalents at beginning of fiscal year
    
    
    2,309,341
    
    
    
    1,896,801Cash and cash equivalents at end of fiscal year
    
    
    2,660,618
    
    
    
    2,309,341Net increase in cash and cash equivalents
    
    
    351,277
    
    
    
    412,540Causes of changes in cash and cash equivalentsOperating activitiesNet collections / (payments):- Government and private securities
    
    
    (156,223
    )
    
    
    118,097- Loans- to the financial sector
    
    
    62,555
    
    
    
    224,438- to the non-financial government sector
    
    
    61,628
    
    
    
    26,089- to the non-financial private sector and foreign residents
    
    
    256,847
    
    
    
    (2,004,478
    )- Other receivables from financial intermediation
    
    
    (171,720
    )
    
    
    (659,434
    )- Assets subject to financial lease
    
    
    73,511
    
    
    
    (9,072
    )- Deposits- from the financial sector
    
    
    8,775
    
    
    
    7,208- from the non-financial government sector
    
    
    1,925,470
    
    
    
    381,401- from the non-financial private sector and foreign residents
    
    
    (534,318
    )
    
    
    2,096,784- Other liabilities from financial intermediation- Financing facilities from the financial sector
    
    
    (53,232
    )
    
    
    - Others (except liabilities included under financing activities)
    
    
    3,651
    
    
    
    71,688Collections related to service-charge income
    
    
    638,718
    
    
    
    480,208Payments related to service-charge expenses
    
    
    (132,507
    )
    
    
    (120,791
    )Administrative expenses paid
    
    
    (778,153
    )
    
    
    (617,548
    )Payments of organization and development expenses
    
    
    (33,501
    )
    
    
    (49,762
    )Net collections related to penalty interest
    
    
    12,843
    
    
    
    6,706Differences from payments related to court orders
    
    
    (11,467
    )
    
    
    (28,589
    )Collections of dividends from other companies
    
    
    30,612
    
    
    
    850
  F - 115




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2008
    
    
    2007 (1)Operating activities (Contd.)Other (payment)/collections related to other income and losses
    
    
    (8,667
    )
    
    
    10,200Net collections/(payments) from other operating activities
    
    
    28,250
    
    
    
    (19,953
    )Payment of income tax
    
    
    (61,324
    )
    
    
    (68,498
    )Net cash flows generated in/(used in) operating activities
    
    
    1,161,748
    
    
    
    (154,456
    )Investing activitiesNet payments for bank premises and equipment
    
    
    (48,651
    )
    
    
    (69,288
    )Net collection/(payments) for other assets
    
    
    8,421
    
    
    
    (11,696
    )Payments from purchases of investing in other companies
    
    
    (635
    )
    
    
    (48,151
    )Collection from sales of investments in other companies
    
    
    24
    
    
    
    Net payment for other investing activities
    
    
    (886
    )
    
    
    Net cash flows used in investing activities
    
    
    (41,727
    )
    
    
    (129,135
    )Financing activitiesNet collections / (payments):- Nonsubordinated corporate bonds
    
    
    (133,211
    )
    
    
    749,464- Central Bank of Argentina- Other
    
    
    (41,672
    )
    
    
    (18,316
    )- Banks and International Institutions
    
    
    35,689
    
    
    
    (13,757
    )- Subordinated corporate bonds
    
    
    (18,397
    )
    
    
    (13,240
    )- Financing received from financial institutions
    
    
    (63,331
    )
    
    
    83,035Payment of dividends
    
    
    (170,995
    )
    
    
    (102,591
    )Other payments for financing activities- Own shares reacquired
    
    
    (380,164
    )
    
    
    Net cash flows (used in)/ generated in financing activities
    
    
    (772,081
    )
    
    
    684,595Financial income and holding gains on cash and cash equivalents
    
    
    3,337
    
    
    
    11,536Net increase in cash and cash equivalents
    
    
    351,277
    
    
    
    412,540
 (1)
    
    See notes 4.2. and 4.4.s). STATEMENTS OF CASH FLOWS (PARENT ONLY)
 Changes in Cash
    
    2006 (1)Cash and due from banks at the beginning of year
    
    
    1,090,467Increase in cash
    
    
    806,334Cash and due from banks at end of year
    
    
    1,896,801Causes of changes in cashCash provided by (used in) operating activitiesFinancial income collected
    
    
    1,005,480Services-charge income collected
    
    
    378,263Less:Financial expenses paid
    
    
    (365,715
    )Services-charge expenses paid
    
    
    (82,520
    )Administrative expenses paid
    
    
    (494,034
    )Net cash provided by operating activities
    
    
    441,474
  F - 116




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BANCO MACRO S.A. AND SUBSIDIARIES
 2006 (1)Plus:Other sources of cashDecrease in government and private securities
    
    
    967,476Increase in deposits
    
    
    1,289,254Increase in other liabilities from financial intermediation
    
    
    231,134Increase in other liabilities (2)
    
    
    451,089Capital increase
    
    
    469,500Other sources of cash
    
    
    128,300Total other sources of cash
    
    
    3,536,753Total sources of cash
    
    
    3,978,227Uses of cashIncrease in loans
    
    
    (1,727,663
    )Increase in other receivables from financial intermediation
    
    
    (131,212
    )Increase in other assets (3)
    
    
    (1,156,453
    )Decrease in other liabilities
    
    
    (205
    )Cash dividends paid
    
    
    (68,395
    )Other uses of cash
    
    
    (87,965
    )Total uses of cash
    
    
    (3,171,893
    )Increase in cash
    
    
    806,334
 (1)
    
    See note 4.2.(2)
    
    Including the effect resulting from the issuance of subordinated
corporate bonds.(3)
    
    Including the effect deriving from the purchase of Banco del Tucumán S.A.
and Nuevo Banco Bisel S.A. 35.28.
    
    New accounting pronouncements (US GAAP)
 a)
    
    Business Combinations  SFAS 141 (R)
  b)
    
    Noncontrolling Interests in Consolidated Financial Statements  SFAS 160
   F - 117




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BANCO MACRO S.A. AND SUBSIDIARIES
 c)
    
    Disclosures about Derivative Instruments and Hedging Activities  SFAS 161
  d)
    
    The Hierarchy of Generally Accepted Accounting Principles  SFAS 162
  e)
    
    Subsequent Events  SFAS 165
     f)
    
    Accounting for Transfers of Financial Assets, an amendment of FASB
Statement No. 140  SFAS 166
   F - 118




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 g)
    
    Amendments to FASB Interpretation No. 46 (R) SFAS 167
  h)
    
    Recognition and Presentation of Other-Than-Temporary Impairments  FSP
FAS 115-2 and SFAS 124-2
   i)
    
    Replacing the current requirement that a holder have
the positive intent and ability to hold an impaired security to recovery in
order to conclude an impairment was temporary with a requirement that an
entity conclude it does not intend to sell an impaired security and it is
not more likely than not it will be required to sell the security before
the recovery of its amortized cost basis.
 ii)
    
    Requiring the other-than-temporary impairment to be
separated into: a) The amount representing the decrease in cash flows
expected to be collected (hereinafter referred to as credit loss), which
is recognized in earnings, and b) The amount related to all other factors,
which is recognized in other comprehensive income (OCI) in circumstances in
which a holder concludes it will not recover the entire cost basis of an
impaired security and the holder does not intend to sell the security and
has concluded it is not more likely than not they will be required to sell
the security before recovery of its amortized cost basis  if these
conditions are not met, this amount is recognized in net income and need
not be separately measured.
 iii)
    
    Modifying the terminology used to assess the
collectibility of cash flows from probable that the investor will be
unable to collect all amounts due to the investor does not expect to
recover the entire amortized cost basis of the security. With this change,
the FASB has lowered the threshold for recognizing an OTTI from probable
to more likely than not  Requiring the total OTTI to be presented in the
statement of earnings with an offset in a separate line item for any amount
of the total OTTI that is recognized in OCI.
 iv)
    
    For securities classified as held-to-maturity,
requiring the amount of the OTTI recognized in OCI to be amortized (through
OCI) over the remaining life of the security.
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BANCO MACRO S.A. AND SUBSIDIARIES
  i)
    
    Effective Date of FASB Statement No. 157  FSP FAS 157-2
   j)
    
    Determining Fair Value When the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying Transactions That
Are Not Orderly  FSP FAS 157-4.
       F - 120




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BANCO MACRO S.A. AND SUBSIDIARIES
 k)
    
    Accounting for Transfers of Financial Assets and Repurchase Financing
Transactions  FSP FAS 140-3
   l)
    
    Disclosures by Public Entities (Enterprises) about Transfers of
Financial Assets and Interests in Variable Interest Entities- FSP FAS 140- 4 and
FIN 46(R)-8
  .
 m)
    
    Interim Disclosures about Fair Value of Financial Instruments  FSP
FAS 107-1 and APB 28-1
      F - 121




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EXHIBIT INDEX
 Exhibit Number
    
    Description1.1
    *
    
    Amended and Restated Bylaws of Banco Macro S.A., as amended on April 21, 2009.2.1
    
    
    Deposit Agreement among the registrant, The Bank of New York, as depositary, and the holders from
time to time of American depositary shares issued thereunder, including the form of American
depositary receipts, incorporated by reference to the Registration Statement on Form F-1, as
amended, filed by Banco Macro S.A. on March 20, 2006 (File No. 333-130901).8
    
    
    See Note 4.1 to our financial statements for information regarding our subsidiaries.12.1
    *
    
    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.12.2
    *
    
    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.13.1
    *
    
    Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.13.2
    *
    
    Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 *
    
    Filed herein.