##### 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, 2010
 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-Cumulative JuniorSubordinated 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
583,249,498 Class B ordinary shares, par value Ps. 1.00 per share
 
  o þ
  o þ
  þ o
  Large accelerated filer þ
    
    Accelerated filer o
    
    Non-accelerated filero
  U.S. GAAP o
    
    International Financial Reporting oOther þ
    
    Standards as issued by the International Accounting Standards Board o
   o þ
  o þ
   o o
 Please send copies of notices and communications from the Securities and Exchange Commission to:
 Hugo N. L. Bruzone
    
    Andrés de la CruzBruchou, Fernández Madero & Lombardi
    
    Cleary Gottlieb Steen & Hamilton LLPIng. Butty 275, 12th Floor
    
    One Liberty PlazaC1001AFA  Buenos Aires, Argentina
    
    New York, New York 10006-1470




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##### 



Table of Contents
 PART I
    
    
    4Item 1. Identity of Directors, Senior Management and Advisers
    
    
    4Item 2. Offer Statistics and Expected Timetable
    
    
    4Item 3. Key Information
    
    
    4Item 4. Information on the Bank
    
    
    18Item 4A. Unresolved Staff Comments
    
    
    64Item 5. Operating and Financial Review and Prospects
    
    
    64Item 6. Directors, Senior Management and Employees
    
    
    79Item 7. Major Shareholders and Related Party Transactions
    
    
    88Item 8. Financial Information
    
    
    90Item 9. The Offer and Listing
    
    
    92Item 10. Additional Information
    
    
    93Item 11. Quantitative and Qualitative Disclosure About Market Risk
    
    
    104Item 12. Description of Securities Other Than Equity Securities
    
    
    105PART II
    
    
    106Item 13. Defaults, Dividend Arrearages and Delinquencies
    
    
    106Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
    
    
    106Item 15. Controls and Procedures
    
    
    106Item 16A. Audit Committee Financial Expert
    
    
    107Item 16B. Code of Ethics
    
    
    107Item 16C. Principal Accountant Fees and Services
    
    
    108Item 16D. Exemptions from the Listing Standards for Audit Committees
    
    
    108Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
    
    
    108Item 16F. Change in Registrants Certifying Accountant
    
    
    108Item 16G. Corporate Governance
    
    
    108PART III
    
    
    111Item 17. Financial Statements
    
    
    111Item 18. Financial Statements
    
    
    111Item 19. Exhibits
    
    
    111Exhibit 12.1Exhibit 12.2Exhibit 13.1Exhibit 13.2
   1




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Certain defined terms
 
 Banco Central de la República Argentina, Superintendencia de Entidades Financieras y Cambiarias Comisión Nacional de Valores, Bolsa de Comercio de Buenos Aires, Inspección General de Justicia,
   Presentation of certain financial and other information. Accounting practices
   
    
    Banco del Tucumán S.A. (Banco del Tucumán)
    
    Banco Privado de Inversiones S.A. (Banco Privado)
    
    Macro Bank Limited (an entity organized under the laws of Bahamas)
    
    Macro Securities S.A. Sociedad de Bolsa
    
    Sud Inversiones & Análisis S.A.
    
    Macro Fondos S.G.F.C.I.S.A.
     2




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www.bcra.gov.ar
 Rounding
  Market position
  Our internet site is not part of this annual report
 www.macro.com.ar
 Cautionary statement concerning forward-looking statements
  
    
    changes in general economic, business, political, legal, social or other conditions in
Argentina and worldwide;
 
    
    effects of the global financial markets and economic crisis;
 
    
    deterioration in regional business and economic conditions;
 
    
    inflation;
 
    
    fluctuations and declines in the exchange rate of the peso;
 
    
    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 and other
delinquencies;
 
    
    increase in the provisions for loan losses;
 
    
    fluctuations and declines in the value of Argentine public debt;
 
    
    decrease in deposits, customers loss and revenue losses;
 
    
    competition in banking, financial services and related industries and the loss of market
share;
 
    
    cost and availability of funding;
 
    
    technological changes, changes in consumer spending and saving habits, and inability to
implement new technologies; and
 
    
    the risk factors discussed under Item 3.D  Risk factors.
   3




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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 31,2006 (1)
    
    
    2007
    
    
    2008 (2)
    
    
    2009 (2)
    
    
    2010 (3)(in thousands of pesos, except for number of shares,net income per share and dividends per share)Consolidated Income StatementCentral Bank Rules:Financial income
    
    
    1,155,207
    
    
    
    1,890,422
    
    
    
    3,029,860
    
    
    
    3,860,452
    
    
    
    3,728,438Financial expense
    
    
    (394,897
    )
    
    
    (805,265
    )
    
    
    (1,342,062
    )
    
    
    (1,511,607
    )
    
    
    (1,330,170
    )Gross intermediation margin
    
    
    760,310
    
    
    
    1,085,157
    
    
    
    1,687,798
    
    
    
    2,348,845
    
    
    
    2,398,268Provision for loan losses
    
    
    (59,773
    )
    
    
    (94,717
    )
    
    
    (297,606
    )
    
    
    (197,512
    )
    
    
    (215,040
    )Service charge income
    
    
    452,232
    
    
    
    662,326
    
    
    
    891,700
    
    
    
    1,050,275
    
    
    
    1,324,541Service charge expense
    
    
    (93,323
    )
    
    
    (150,282
    )
    
    
    (172,401
    )
    
    
    (226,599
    )
    
    
    (285,365
    )Administrative expenses
    
    
    (679,874
    )
    
    
    (997,466
    )
    
    
    (1,270,002
    )
    
    
    (1,522,420
    )
    
    
    (1,917,314
    )Other income
    
    
    234,807
    
    
    
    183,525
    
    
    
    188,450
    
    
    
    121,977
    
    
    
    167,523Other expense
    
    
    (109,900
    )
    
    
    (98,915
    )
    
    
    (103,328
    )
    
    
    (158,294
    )
    
    
    (89,540
    )Minority Interest in subsidiaries
    
    
    (3,178
    )
    
    
    (2,083
    )
    
    
    (3,354
    )
    
    
    (5,092
    )
    
    
    (6,868
    )Income Tax
    
    
    (76,961
    )
    
    
    (92,345
    )
    
    
    (261,207
    )
    
    
    (659,250
    )
    
    
    (365,775
    )Net income
    
    
    424,340
    
    
    
    495,200
    
    
    
    660,050
    
    
    
    751,930
    
    
    
    1,010,430Net income per share (4)
    
    
    0.64
    
    
    
    0.72
    
    
    
    1.00
    
    
    
    1.26
    
    
    
    1.70Dividends per share (5)
    
    
    0.15
    
    
    
    0.25
    
    
    
    0.25
    
    
    
    0.35
    
    
    
    0.85Dividends per share in US$(5)
    
    
    0.05
    
    
    
    0.08
    
    
    
    0.07
    
    
    
    0.09
    
    
    
    0.21Number of shares outstanding (in thousands)
    
    
    683,943
    
    
    
    683,979
    
    
    
    608,437
    
    
    
    594,485
    
    
    
    594,485
  4




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Year Ended December 31,2006 (1)
    
    
    2007
    
    
    2008 (2)
    
    
    2009 (2)
    
    
    2010 (3)(in thousands of pesos, except for number of shares,net income per share and dividends per share)U.S. GAAP: (6)Net income before extraordinary items
    
    
    360,879
    
    
    
    385,537
    
    
    
    631,171
    
    
    
    993,769
    
    
    
    865,215Extraordinary Gain
    
    
    41,705Less: Net income attributable to the
non-controlling interest
    
    
    (2,920
    )
    
    
    (1,497
    )
    
    
    (2,928
    )
    
    
    (7,484
    )
    
    
    (5,943
    )Net income attributable to the controlling
interest
    
    
    399,664
    
    
    
    384,040
    
    
    
    628,243
    
    
    
    986,285
    
    
    
    859,272Net income per share before extraordinary
item(s)
    
    
    0.54
    
    
    
    0.56
    
    
    
    0.95
    
    
    
    1.66
    
    
    
    1.45Net income per share for extraordinary gain
    
    
    0.06Total net income per share (7)
    
    
    0.60
    
    
    
    0.56
    
    
    
    0.95
    
    
    
    1.66
    
    
    
    1.45Weighted average number of shares outstanding (in thousands)
    
    
    666,478
    
    
    
    683,952
    
    
    
    658,124
    
    
    
    595,634
    
    
    
    594,485
 (1)
    
    The results of operations of Banco del Tucumán and Nuevo Banco Bisel are consolidated with
Banco Macro from May 5 and August 11, 2006, respectively (in the case of Nuevo Banco Bisel through
August 18, 2009, date on which it merged with and into us).(2)
    
    See note 4.2 to our audited consolidated financial statements for the year ended December 31,
2010.(3)
    
    The results of operations of Banco Privado are consolidated with Banco Macro from September 20,
2010.(4)
    
    Net income in accordance with Central Bank Rules divided by weighted average number of
outstanding shares.(5)
    
    Includes cash dividends approved by the shareholders meetings for each of such fiscal years.(6)
    
    See note 32 to our audited consolidated financial statements for the year ended December 31,
2010 for a summary of significant differences between Central Bank Rules and U.S. GAAP.(7)
    
    Net income in accordance with U.S. GAAP divided by weighted average number of shares
outstanding.
 As of December 31,2006 (1)
    
    
    2007
    
    
    2008 (2)
    
    
    2009 (2)
    
    
    2010 (3)(in thousands of pesos)Consolidated Balance SheetCentral Bank Rules:AssetsCash and due from banks and correspondents
    
    
    2,626,908
    
    
    
    3,117,426
    
    
    
    3,523,897
    
    
    
    5,016,192
    
    
    
    5,202,004Government and private securities
    
    
    3,222,955
    
    
    
    3,914,536
    
    
    
    4,708,649
    
    
    
    6,901,041
    
    
    
    7,030,074Loans:to the non-financial government sector
    
    
    774,273
    
    
    
    732,481
    
    
    
    744,507
    
    
    
    206,484
    
    
    
    336,430to the financial sector
    
    
    436,930
    
    
    
    161,702
    
    
    
    80,423
    
    
    
    90,916
    
    
    
    155,701to the non-financial private sector and foreign residents
    
    
    5,524,483
    
    
    
    9,335,656
    
    
    
    10,893,376
    
    
    
    11,247,452
    
    
    
    15,932,882Allowances for loan losses
    
    
    (208,581
    )
    
    
    (220,422
    )
    
    
    (438,348
    )
    
    
    (448,045
    )
    
    
    (514,910
    )Other assets
    
    
    2,106,186
    
    
    
    2,682,167
    
    
    
    2,917,768
    
    
    
    3,845,198
    
    
    
    5,382,226Total assets
    
    
    14,483,154
    
    
    
    19,723,546
    
    
    
    22,430,272
    
    
    
    26,859,238
    
    
    
    33,524,407Average assets
    
    
    11,796,936
    
    
    
    17,691,769
    
    
    
    21,865,952
    
    
    
    23,964,067
    
    
    
    28,078,290Liabilities and shareholders equityDeposits:from the non-financial government sector
    
    
    1,295,630
    
    
    
    1,774,121
    
    
    
    3,937,961
    
    
    
    3,613,924
    
    
    
    5,216,109from the financial sector
    
    
    5,078
    
    
    
    13,310
    
    
    
    22,438
    
    
    
    14,052
    
    
    
    15,776from the non-financial private sector and foreign residents
    
    
    8,770,309
    
    
    
    11,803,718
    
    
    
    11,867,958
    
    
    
    14,964,890
    
    
    
    18,175,508Other liabilities from financial intermediation and other liabilities
    
    
    1,492,949
    
    
    
    2,813,065
    
    
    
    3,157,646
    
    
    
    4,222,152
    
    
    
    5,224,974Provisions
    
    
    77,738
    
    
    
    101,333
    
    
    
    83,004
    
    
    
    88,275
    
    
    
    105,830Subordinated corporate bonds
    
    
    507,844
    
    
    
    490,695
    
    
    
    521,681
    
    
    
    572,473
    
    
    
    598,470Items pending allocation
    
    
    2,052
    
    
    
    1,644
    
    
    
    2,105
    
    
    
    3,987
    
    
    
    7,399Minority interest in subsidiaries
    
    
    11,143
    
    
    
    12,640
    
    
    
    15,568
    
    
    
    20,684
    
    
    
    27,499Total liabilities
    
    
    12,162,743
    
    
    
    17,010,526
    
    
    
    19,608,361
    
    
    
    23,500,437
    
    
    
    29,371,565Shareholders equity
    
    
    2,320,411
    
    
    
    2,713,020
    
    
    
    2,821,911
    
    
    
    3,358,801
    
    
    
    4,152,842Average shareholders equity
    
    
    1,920,559
    
    
    
    2,461,668
    
    
    
    2,778,572
    
    
    
    3,055,736
    
    
    
    3,733,181U.S. GAAP: (4)Shareholders equity attributable to the controlling interest
    
    
    1,956,242
    
    
    
    2,222,361
    
    
    
    2,221,199
    
    
    
    3,269,875
    
    
    
    3,754,434Non-controlling interests
    
    
    11,143
    
    
    
    12,640
    
    
    
    15,568
    
    
    
    23,052
    
    
    
    28,995Shareholders equity
    
    
    1,967,385
    
    
    
    2,235,001
    
    
    
    2,236,767
    
    
    
    3,292,927
    
    
    
    3,783,429
 (1)
    
    The results of operations of Banco del Tucumán and Nuevo Banco Bisel are consolidated with
Banco Macro from May 5 and August 11, 2006, respectively (in the case of Nuevo Banco Bisel through
August 18, 2009, date on which it merged with and into us).(2)
    
    See note 4.2 to our audited consolidated financial statements for the year ended December 31,
2010.(3)
    
    The results of operations of Banco Privado are consolidated with Banco Macro from September
20, 2010.(4)
    
    See note 32 to our audited consolidated financial statements for the year ended December 31,
2010 for a summary of significant differences between Central Bank Rules and U.S. GAAP.
  5




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As of and for the year ended December 31,2006 (1)
    
    
    2007
    
    
    2008 (2)
    
    
    2009 (2)
    
    
    2010 (3)Selected consolidated ratios:Profitability and performanceNet interest margin (%) (4)
    
    
    7.11
    
    
    
    6.85
    
    
    
    7.93
    
    
    
    12.56
    
    
    
    11.15Fee income ratio (%) (5)
    
    
    37.30
    
    
    
    37.90
    
    
    
    34.57
    
    
    
    30.90
    
    
    
    35.58Efficiency ratio (%) (6)
    
    
    56.07
    
    
    
    57.08
    
    
    
    49.23
    
    
    
    44.79
    
    
    
    51.50Ratio of earnings to fixed charges (excluding interest on deposits) (7)
    
    
    6.76
    x
    
    
    4.28
    x
    
    
    6.00
    x
    
    
    10.65
    x
    
    
    11.42
    xRatio of earnings to fixed charges (including interest on deposits) (8)
    
    
    2.49
    x
    
    
    1.88
    x
    
    
    1.80
    x
    
    
    2.06
    x
    
    
    2.24
    xFee income as a percentage of administrative expense (%)
    
    
    66.52
    
    
    
    66.40
    
    
    
    70.21
    
    
    
    68.99
    
    
    
    69.08Return on average equity (%)
    
    
    22.09
    
    
    
    20.12
    
    
    
    23.76
    
    
    
    24.61
    
    
    
    27.07Return on average assets (%)
    
    
    3.60
    
    
    
    2.80
    
    
    
    3.02
    
    
    
    3.14
    
    
    
    3.60LiquidityLoans as a percentage of total deposits (%)
    
    
    66.88
    
    
    
    75.27
    
    
    
    74.03
    
    
    
    62.09
    
    
    
    70.17Liquid assets as a percentage of total deposits (%) (9)
    
    
    61.92
    
    
    
    51.25
    
    
    
    48.80
    
    
    
    53.70
    
    
    
    40.71CapitalTotal equity as a percentage of total assets (%)
    
    
    16.02
    
    
    
    13.76
    
    
    
    12.58
    
    
    
    12.51
    
    
    
    12.39Regulatory capital as a percentage of risk-weighted assets (%)
    
    
    31.31
    
    
    
    26.81
    
    
    
    22.95
    
    
    
    27.38
    
    
    
    24.74Asset QualityNon-performing loans as a percentage of total loans (%) (10)
    
    
    2.01
    
    
    
    1.55
    
    
    
    2.64
    
    
    
    3.25
    
    
    
    2.11Allowances as a percentage of total loans
    
    
    3.10
    
    
    
    2.15
    
    
    
    3.74
    
    
    
    3.88
    
    
    
    3.13Allowances as a percentage of non-performing loans (%) (10)
    
    
    154.25
    
    
    
    138.77
    
    
    
    141.81
    
    
    
    119.45
    
    
    
    148.90Differences due to court orders (Amparos)as a percentage of equity (%)
    
    
    3.22
    
    
    
    3.72
    
    
    
    1.26
    
    
    
    1.50
    
    
    
    1.32OperationsNumber of branches
    
    
    433
    
    
    
    427
    
    
    
    416
    
    
    
    408
    
    
    
    404Number of employees
    
    
    7,585
    
    
    
    7,914
    
    
    
    7,973
    
    
    
    7,863
    
    
    
    8,209
 (1)
    
    The results of operations of Banco del Tucumán and Nuevo Banco Bisel are consolidated with
Banco Macro from May 5 and August 11, 2006, respectively (in the case of Nuevo Banco Bisel through
August 18, 2009, date on which it merged with and into us).(2)
    
    See note 4.2 to our audited consolidated financial statements for the year ended December 31,
2010.(3)
    
    The results of operations of Banco Privado are consolidated with Banco Macro from September
20, 2010.(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 interest on deposits is equal to gross interest expense.(9)
    
    Liquid assets include cash, LEBACs and NOBACs (considered cash equivalents under Central Bank
Rules), interbanking loans and overnight loans to highly rated companies.(10)
    
    Non-performing loans include all loans to borrowers classified as 3- troubled/medium risk,
4-with high risk of insolvency/high risk, 5-irrecoverable and 6-irrecoverable according to
Central Bank Rules under the Central Bank loan classification system.
 B. Capitalization and Indebtedness
  C. Reasons for the Offer and Use of Proceeds
  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 occurs,it 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 may not be sustainable
   6




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The Argentine economy could be adversely affected by economic developments in the global markets
       The financial systems of the main developed economies remain subject of uncertainty and might cause
a reversal of the capital flows
   7




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Argentinas ability to obtain financing from international markets is limited, which may impair its
ability to implement reforms and public policies and foster economic growth
        Argentina is subject to litigation by foreign shareholders of Argentine companies, which have
resulted and may result in adverse judgments or injunctions against Argentinas assets and limit
its financial resources
    8




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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
   A decline in the international prices for Argentinas main commodity exports could have an adverse
effect on Argentinas economic growth
   High inflation may adversely affect the Argentine long-term credit markets as well as the Argentine
economy in general
    Significant devaluation of the peso against the U.S. dollar may adversely affect the Argentine
economy as well as our financial performance
     9




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##### Table of Contents



Significant appreciation of the peso against the U.S. dollar may adversely affect the Argentine
economy
   High public expenditure could result in long lasting adverse consequences for the Argentine economy
    Argentine government measures to preempt, or in response to, social unrest may adversely affect the
Argentine economy
  Increased uncertainty due to the upcoming Presidential and Congress 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
    10




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##### Table of Contents



The asset quality of financial institutions, including us, is still affected by the exposure to
public sector debt
   Letras del Banco
Central Notas del Banco Central
 Our asset quality and that of other financial institutions may deteriorate if the Argentine private
sector is affected by the international financial crisis
       Class actions against financial entities for an indeterminate amount may adversely affect the
profitability of the financial system
  Limitations on enforcement of creditors rights in Argentina may adversely affect financial
institutions
  The application of the Consumer Protection Law may prevent or limit the collection of payments with
respect to services rendered by us
   11




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##### Table of Contents



Future governmental measures and/or regulations may adversely affect the economy and the operations
of financial institutions
   Argentinas insufficient or incorrect implementation of certain anti-money laundering
recommendations may result in difficulties to obtain financing and attract direct foreign
investments.
    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
   12




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##### Table of Contents



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 between interest rates received on loans and those paid on deposits without
corresponding increases in lending volumes could adversely affect our profitability
    Our estimates and established reserves for credit risk and potential credit losses may prove to be
inaccurate and/or insufficient, which may materially and adversely affect our financial condition
and results of operations
     13




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##### Table of Contents



Changes in market conditions, and any risks associated therewith, could materially and adversely
affect our financial condition and results of operations
  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
   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
  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
   14




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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
  Risks relating to our notes
 The notes are effectively subordinated to our secured creditors and our depositors
 pari passu
   Exchange controls and restrictions on transfers abroad may impair your ability to receive payments
on the 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
   15




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##### Table of Contents



Holders of notes may find it difficult to enforce civil liabilities against us or our directors,
officers and controlling persons
 domicilio social
 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
  Risks relating to our 2036 Notes
 Interest on the 2036 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 2036 Notes
    16




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The 2036 Notes are unsecured and subordinated and, in the event of our bankruptcy, the 2036 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
  The U.S. federal income tax treatment of the 2036 Notes is unclear
   Risks relating to our 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 the value of 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
  17




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##### Table of Contents



Item 4.
    
    Information on the Bank
 A. History and development of the Bank
 sociedad anónima Estatutos Sociedades
Anónimas
  Our history  Banco Macro S.A.
         Nuevo Banco Bisel
   18




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##### Table of Contents



th
    Banco Privado
        B. Business Overview
   
    
    Ps.33,524.4 million (US$8,432.1 million) in total assets;
 
    
    Ps.15,932.9 million (US$4,007.5 million) in loans to the non-financial private sector;
 
    
    Ps.23,407.4 million (US$5,887.5 million) in total deposits;
  19




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##### Table of Contents




    
    approximately 2.7 million retail customers and 0.08 million corporate customers that
provide us with approximately 2.8 million clients; and
 
    
    approximately 1.0 million employee payroll accounts for private sector customers and
provincial governments.
  Plan Sueldo Plan Sueldo
 Our competitive strengths
  
    
    Strong financial position. As of December 31, 2010 we had excess capital of Ps.2,562.3
million (24.7% capitalization ratio). Our excess capital is aimed at supporting growth,
and consequently, a higher leverage of our balance sheet.
   
    
    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. 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. The Banks focus is
particulary in some export oriented provinces. 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.
 
    
    Largest private-sector branch network in Argentina. With 404 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.
 
    
    Loyal customer base. We have a loyal customer base, as evidenced in part by the quick
recovery of our deposit base after the 2001-2002 local crisis. We believe that our
customers are loyal to us due to our presence in traditionally underserved markets and to
our Plan Sueldopayroll services. We have benefited from Argentine regulations that
require all employees to maintain Plan Sueldoaccounts 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 Sueldoaccounts, 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.
  20




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##### Table of Contents



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 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.
 
    
    Focus on corporate banking customers, strengthening financing to the small
business segment.
 
    
    Expand our share in the agricultural and livestock industry and those
export-related activities, introducing a product specially designed for this sector
(Campo XXI).
 
    
    Expand Plan Sueldopayroll services. We will continue to actively market our Plan
Sueldopayroll services, emphasizing the benefits of our extensive network for
companies with nationwide or regional needs.
 
    
    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.
 
    
    Expand the customer base in the City of Buenos Aires through the acquisition and
maintenance of Banco Privado cards and clients portfolio and by opening new
branches in this region.
 
    
    Focus on efficiency and cost control. We intend to increase our efficiency creating new
economies of scale, and reducing costs in connection with the integration of merged
entities (Banco Macro, Nuevo Banco Suquía and Nuevo Banco Bisel). We have been working on
upgrading our information systems and other technology in order to further reduce 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 the integration
of Nuevo Banco Bisel during the second half of 2009.
 
    
    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 Sueldopayroll 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 retail clients, of whom only 23.5% currently have personal
loans from us.
  21




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##### Table of Contents



Our products and services
  Retail customers
 Overview
       Savings and checking accounts and time deposits
      22




---



##### Table of Contents



Approximate numberof retail accounts(as of December 31, of each year)Product
    
    2008
    
    
    2009
    
    
    2010SavingsTotal savings accounts
    
    
    1,550,151
    
    
    
    1,903,566
    
    
    
    1,759,448Plan Sueldo(private sector)
    
    
    577,734
    
    
    
    559,051
    
    
    
    534,267Plan Sueldo(public sector)
    
    
    296,973
    
    
    
    572,675
    
    
    
    510,589Retirees
    
    
    329,287
    
    
    
    400,114
    
    
    
    382,872Open market
    
    
    346,157
    
    
    
    371,726
    
    
    
    331,720CheckingChecking accounts
    
    
    129,370
    
    
    
    174,046
    
    
    
    258,678Electronic account accessDebit cards
    
    
    1,401,639
    
    
    
    1,420,971
    
    
    
    1,550,806
 Lending products and services
     Retail loan portfolio(as of December 31, of each year)(in millions of pesos and as percentage of retail loan portfolio)2008
    
    
    2009
    
    
    2010Overdrafts
    
    
    186.1
    
    
    
    3.1
    %
    
    
    188.8
    
    
    
    3.0
    %
    
    
    214.8
    
    
    
    2.4
    %Documents (1)
    
    
    347.7
    
    
    
    5.8
    %
    
    
    393.1
    
    
    
    6.3
    %
    
    
    545.1
    
    
    
    6.0
    %Pledged loans (2)
    
    
    212.6
    
    
    
    3.6
    %
    
    
    151.3
    
    
    
    2.4
    %
    
    
    141.5
    
    
    
    1.6
    %Mortgage loans
    
    
    431.3
    
    
    
    7.3
    %
    
    
    395.7
    
    
    
    6.3
    %
    
    
    433.0
    
    
    
    4.8
    %Personal loans
    
    
    3,849.1
    
    
    
    64.7
    %
    
    
    4,052.6
    
    
    
    64.7
    %
    
    
    5,865.6
    
    
    
    64.9
    %Credit card loans
    
    
    815.1
    
    
    
    13.7
    %
    
    
    897.0
    
    
    
    14.3
    %
    
    
    1,489.5
    
    
    
    16.5
    %Other
    
    
    104.3
    
    
    
    1.8
    %
    
    
    184.1
    
    
    
    2.9
    %
    
    
    349.9
    
    
    
    3.9
    %Total
    
    
    5,946.1
    
    
    
    100.0
    %
    
    
    6,262.6
    
    
    
    100.0
    %
    
    
    9,039.3
    
    
    
    100.0
    %
 (1)
    
    Factoring, check cashing advances and loans with promissory notes.(2)
    
    Primarily secured automobile loans.
      Retail loan portfolio (in pesos except where noted)(as of December 31, 2010)Personal
    
    
    Documents
    
    
    Mortgage
    
    
    
    
    
    
    Pledged
    
    
    Credit cardloans
    
    
    (1)
    
    
    loans
    
    
    Overdrafts
    
    
    loans (2)
    
    
    loans
    
    
    OthersTotal customers with outstanding loans
    
    
    602,508
    
    
    
    9,650
    
    
    
    6,767
    
    
    
    214,162
    
    
    
    1,758
    
    
    
    657,353
    
    
    
    8,523Average gross loan amount
    
    
    7,074
    
    
    
    5,807
    
    
    
    62,558
    
    
    
    798
    
    
    
    76,720
    
    
    
    2,027
    
    
    
    35,172
 (1)
    
    Factoring, check cashing advances and loans with promissory notes.(2)
    
    Primarily secured automobile loans.
  23




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##### Table of Contents



Plan Sueldo payroll services
 Macrosueldos,
 Corporate customers
 Overview
      Lending products and services
   Short-term:
 Medium- to long-term:
   24




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##### Table of Contents



Loans to companies in excess of Ps. 20,000(as of December 31, of each year)(in millions of pesos and as percentage of corporate loan portfolio)2008
    
    
    2009
    
    
    2010Overdrafts
    
    
    1,409.8
    
    
    
    28.5
    %
    
    
    1,273.7
    
    
    
    25.6
    %
    
    
    1,857.2
    
    
    
    26.9
    %Documents (1)
    
    
    1,010.6
    
    
    
    20.4
    %
    
    
    1,030.7
    
    
    
    20.7
    %
    
    
    1,256.9
    
    
    
    18.2
    %Pledged loans (2)
    
    
    142.1
    
    
    
    2.9
    %
    
    
    121.9
    
    
    
    2.4
    %
    
    
    215.7
    
    
    
    3.1
    %Mortgage loans
    
    
    328.8
    
    
    
    6.6
    %
    
    
    371.7
    
    
    
    7.5
    %
    
    
    490.9
    
    
    
    7.1
    %Other (3)
    
    
    2,056.0
    
    
    
    41.6
    %
    
    
    2,186.9
    
    
    
    43.8
    %
    
    
    3,072.9
    
    
    
    44.7
    %Total
    
    
    4,947.3
    
    
    
    100.0
    %
    
    
    4,984.9
    
    
    
    100.0
    %
    
    
    6,893.6
    
    
    
    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.
 Payroll services.
 Our distribution network
   25




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##### Table of Contents



As of December 31, 2010Market Share of% of
    
    
    total branches inProvince
    
    Branches
    
    
    Total
    
    
    each provinceCity of Buenos Aires
    
    
    24
    
    
    
    5.9
    %
    
    
    3.1
    %Buenos Aires (rest)
    
    
    52
    
    
    
    12.9
    %
    
    
    4.1
    %Catamarca
    
    
    1
    
    
    
    0.2
    %
    
    
    4.5
    %Chaco
    
    
    1
    
    
    
    0.2
    %
    
    
    1.7
    %Chubut
    
    
    5
    
    
    
    1.2
    %
    
    
    5.4
    %Córdoba
    
    
    61
    
    
    
    15.1
    %
    
    
    15.1
    %Corrientes
    
    
    3
    
    
    
    0.7
    %
    
    
    4.8
    %Entre Ríos
    
    
    6
    
    
    
    1.5
    %
    
    
    5.0
    %Formosa
    
    
    
    
    
    
    
    
    
    
    Jujuy
    
    
    15
    
    
    
    3.7
    %
    
    
    48.4
    %La Pampa
    
    
    2
    
    
    
    0.5
    %
    
    
    1.9
    %La Rioja
    
    
    2
    
    
    
    0.5
    %
    
    
    7.7
    %Mendoza
    
    
    13
    
    
    
    3.2
    %
    
    
    8.8
    %Misiones
    
    
    35
    
    
    
    8.7
    %
    
    
    54.7
    %Neuquén
    
    
    4
    
    
    
    1.0
    %
    
    
    6.0
    %Río Negro
    
    
    7
    
    
    
    1.7
    %
    
    
    10.3
    %Salta
    
    
    25
    
    
    
    6.2
    %
    
    
    48.1
    %San Juan
    
    
    1
    
    
    
    0.2
    %
    
    
    2.8
    %San Luis
    
    
    1
    
    
    
    0.2
    %
    
    
    2.2
    %Santa Cruz
    
    
    2
    
    
    
    0.5
    %
    
    
    5.3
    %Santa Fe
    
    
    113
    
    
    
    28.0
    %
    
    
    26.3
    %Santiago del Estero
    
    
    1
    
    
    
    0.2
    %
    
    
    2.0
    %Tierra del Fuego
    
    
    2
    
    
    
    0.5
    %
    
    
    11.8
    %Tucumán
    
    
    28
    
    
    
    6.9
    %
    
    
    44.4
    %TOTAL
    
    
    404
    
    
    
    100.0
    %
    
    
    9.9
    %
 Source:Central Bank
  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
     26




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##### Table of Contents



Credit risk rating
   Plan Sueldo
     
    
    estimating and providing for losses (one of the most important credit risk management activities);
    
    determining risk adjusted rates; and
    
    performing Stress Tests.
  Credit monitoring and review process
   Technology
      Banking industry
   27




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##### Table of Contents



Scale
     2008
    
    
    2009
    
    
    2010(in million of pesos)Total Assets (1)
    
    
    333,723
    
    
    
    368,091
    
    
    
    450,179Total Deposits (1)
    
    
    229,090
    
    
    
    253,985
    
    
    
    325,502Gross Private Sector Loans (1)
    
    
    123,964
    
    
    
    137,559
    
    
    
    167,213Private Sector Deposits (1)
    
    
    166,359
    
    
    
    181,959
    
    
    
    223,891
 Source: Central Bank
 (1)
    
    Twelve-month average.
 Profitability
    2008
    
    
    2009
    
    
    2010Net income (in millions of pesos) (1)
    
    
    5,357
    
    
    
    8,103
    
    
    
    11,780Return on average equity
    
    
    13.7
    %
    
    
    18.0
    %
    
    
    24.3
    %Return on average assets
    
    
    1.6
    %
    
    
    2.2
    %
    
    
    2.8
    %
 Source: Central Bank(1)
    
    Data is available to calculate the consolidated results of the financial system as from
January 2008. This indicator excludes results and asset accounts related to permanent interests in
domestic financial institutions.
 Asset Quality
     2008
    
    
    2009
    
    
    2010Non-performing Credit Portfolio
    
    
    2.7
    %
    
    
    3.0
    %
    
    
    1.9
    %Non-performing Credit Portfolio  Private Sector
    
    
    3.1
    %
    
    
    3.5
    %
    
    
    2.1
    %Coverage ratio
    
    
    131.4
    %
    
    
    125.7
    %
    
    
    164.2
    %
 Source:
    
    Central Bank
 Competition
    28




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##### Table of Contents



Competitive landscape
  Market Share(% share of total privatesector loans for thePrivate Sector Loans
    
    Ps.
    
    
    Argentine(As of December 31, 2010)
    
    Million
    
    
    financial system)1 BANCO DE LA NACION ARGENTINA (1 )
    
    
    26,710
    
    
    
    13.4
    %2 BANCO SANTANDER RIO S.A.
    
    
    19,661
    
    
    
    9.9
    %3 BANCO DE GALICIA Y BUENOS AIRES S.A.
    
    
    16,586
    
    
    
    8.3
    %4 BANCO MACRO S.A. (2)
    
    
    15,933
    
    
    
    8.0
    %5 BBVA BANCO FRANCES S.A
    
    
    14,285
    
    
    
    7.2
    %6 BANCO DE LA PROVINCIA DE BUENOS AIRES (1)
    
    
    11,821
    
    
    
    5.9
    %7 HSBC BANK ARGENTINA S.A.
    
    
    10,429
    
    
    
    5.2
    %8 BANCO DE LA CIUDAD DE BUENOS AIRES (1)
    
    
    7,849
    
    
    
    3.9
    %9 BANCO CREDICOOP COOPERATIVO LIMITADO
    
    
    7,765
    
    
    
    3.9
    %10 CITIBANK N.A
    
    
    7,195
    
    
    
    3.6
    %OTHERS
    
    
    60,962
    
    
    
    30.6
    %TOTAL
    
    
    199,196
    
    
    
    100.0
    %
 Source: Central Bank(1)
    
    Public sector banks.(2)
    
    Based on our consolidated financial statements.
 Market Share(% share of equity for theEquity
    
    Ps.
    
    
    Argentine financial(As of December 31, 2010)
    
    Million
    
    
    system)1 BANCO DE LA NACION ARGENTINA(1 )
    
    
    11,375
    
    
    
    19.8
    %2 BANCO MACRO S.A. (2)
    
    
    4,153
    
    
    
    7.2
    %3 BANCO SANTANDER RIO S.A.
    
    
    3,862
    
    
    
    6.7
    %4 BBVA BANCO FRANCES S.A.
    
    
    3,747
    
    
    
    6.5
    %5 BANCO HIPOTECARIO S.A.
    
    
    2,974
    
    
    
    5.2
    %6 HSBC BANK ARGENTINA S.A
    
    
    2,612
    
    
    
    4.5
    %7 BANCO DE GALICIA Y DE BUENOS AIRES S.A.
    
    
    2,596
    
    
    
    4.5
    %8 CITIBANK S.A
    
    
    2,361
    
    
    
    4.1
    %9 BANCO DE LA CIUDAD DE BUENOS AIRES (1)
    
    
    2,224
    
    
    
    3.9
    %10 BANCO DE LA PROVINCIA DE BUENOS AIRES (1)
    
    
    2,163
    
    
    
    3.8
    %OTHERS
    
    
    19,516
    
    
    
    33.9
    %TOTAL
    
    
    57,582
    
    
    
    100.0
    %
 Source: Central Bank
 (1)    Public sector banks.
 (2)    Based on our consolidated financial statements.
 Market Share(% share of totaldeposits for theTotal Deposits
    
    Ps.
    
    
    Argentine financial(As of December 31, 2010)
    
    Million
    
    
    system)1 BANCO DE LA NACION ARGENTINA(1)
    
    
    110,363
    
    
    
    29.3
    %2 BANCO DE LA PROVINCIA DE BUENOS AIRES (1)
    
    
    32,362
    
    
    
    8.6
    %3 BANCO SANTANDER RIO S.A.
    
    
    26,235
    
    
    
    7.0
    %4 BANCO MACRO S.A. (2)
    
    
    23,407
    
    
    
    6.2
    %5 BBVA BANCO FRANCES S.A.
    
    
    22,543
    
    
    
    6.0
    %6 BANCO DE GALICIA Y DE BUENOS AIRES S.A.
    
    
    21,916
    
    
    
    5.8
    %7 HSBC BANK ARGENTINA S.A.
    
    
    16,100
    
    
    
    4.3
    %8 BANCO DE LA CIUDAD DE BUENOS AIRES(1)
    
    
    14,460
    
    
    
    3.8
    %9 BANCO CREDICOOP COOPERATIVO LIMITADO
    
    
    14,449
    
    
    
    3.8
    %10 BANCO PATAGONIA S.A
    
    
    10,299
    
    
    
    2.7
    %OTHERS
    
    
    84,131
    
    
    
    22.4.
    %TOTAL
    
    
    376,264
    
    
    
    100.0
    %
 Source: Central Bank
 (1)
    
    Public sector banks.(2)
    
    Based on our consolidated financial statements.
  29




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##### Table of Contents



Market Share(% share of totalnet income forNet Income
    
    Ps.
    
    
    the Argentine(12 months ended December 31, 2010)
    
    Million
    
    
    financial system)1 BANCO DE LA NACION ARGENTINA S.A. (1)
    
    
    2,333
    
    
    
    19.8
    %2 BANCO SANTANDER RIO S.A.
    
    
    1,601
    
    
    
    13.6
    %3 BBVA BANCO FRANCES S.A
    
    
    1,198
    
    
    
    10.2
    %4 BANCO MACRO S.A. (2)
    
    
    1,010
    
    
    
    8.6
    %5 BANCO DE LA CIUDAD DE BUENOS AIRES (1)
    
    
    639
    
    
    
    5.4
    %6 HSBC BANK ARGENTINA S.A
    
    
    617
    
    
    
    5.2
    %7 CITIBANK
    
    
    546
    
    
    
    4.6
    %8 BANCO DE LA PROVINCIA DE BUENOS AIRES (1)
    
    
    539
    
    
    
    4.6
    %9 BANCO PATAGONIA
    
    
    481
    
    
    
    4.1
    %10 BANCO DE GALICIA Y DE BUENOS AIRES
    
    
    469
    
    
    
    4.0
    %OTHERS
    
    
    2,346
    
    
    
    19.9
    %TOTAL
    
    
    11,780
    
    
    
    100.0
    %
 Source: Central Bank(1)
    
    Public sector banks.(2)
    
    Based on our consolidated financial statements.
   As of December 31, 2010Banking System
    
    
    Banco MacroMarket Share(% share oftotal of% of
    
    
    
    
    
    
    % of
    
    
    branches inProvince
    
    Branches
    
    
    Total
    
    
    Branches
    
    
    Total
    
    
    each province)CITY OF BUENOS AIRES
    
    
    783
    
    
    
    19.3
    %
    
    
    24
    
    
    
    5.9
    %
    
    
    3.1
    %BUENOS AIRES (PROVINCE)
    
    
    1,265
    
    
    
    31.1
    %
    
    
    52
    
    
    
    12.9
    %
    
    
    4.1
    %CATAMARCA
    
    
    22
    
    
    
    0.5
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    4.5
    %CHACO
    
    
    60
    
    
    
    1.5
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    1.7
    %CHUBUT
    
    
    92
    
    
    
    2.3
    %
    
    
    5
    
    
    
    1.2
    %
    
    
    5.4
    %CORDOBA
    
    
    404
    
    
    
    9.9
    %
    
    
    61
    
    
    
    15.1
    %
    
    
    15.1
    %CORRIENTES
    
    
    62
    
    
    
    1.5
    %
    
    
    3
    
    
    
    0.7
    %
    
    
    4.8
    %ENTRE RIOS
    
    
    120
    
    
    
    3.0
    %
    
    
    6
    
    
    
    1.5
    %
    
    
    5.0
    %FORMOSA
    
    
    18
    
    
    
    0.4
    %
    
    
    0
    
    
    
    0.0
    %
    
    
    0.0
    %JUJUY
    
    
    31
    
    
    
    0.8
    %
    
    
    15
    
    
    
    3.7
    %
    
    
    48.4
    %LA PAMPA
    
    
    103
    
    
    
    2.5
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    1.9
    %LA RIOJA
    
    
    26
    
    
    
    0.6
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    7.7
    %MENDOZA
    
    
    147
    
    
    
    3.6
    %
    
    
    13
    
    
    
    3.2
    %
    
    
    8.8
    %MISIONES
    
    
    64
    
    
    
    1.6
    %
    
    
    35
    
    
    
    8.7
    %
    
    
    54.7
    %NEUQUÉN
    
    
    67
    
    
    
    1.6
    %
    
    
    4
    
    
    
    1.0
    %
    
    
    6.0
    %RIO NEGRO
    
    
    68
    
    
    
    1.7
    %
    
    
    7
    
    
    
    1.7
    %
    
    
    10.3
    %SALTA
    
    
    52
    
    
    
    1.3
    %
    
    
    25
    
    
    
    6.2
    %
    
    
    48.1
    %SAN JUAN
    
    
    36
    
    
    
    0.9
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    2.8
    %SAN LUIS
    
    
    45
    
    
    
    1.1
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    2.2
    %SANTA CRUZ
    
    
    38
    
    
    
    0.9
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    5.3
    %SANTA FE
    
    
    430
    
    
    
    10.6
    %
    
    
    113
    
    
    
    28.0
    %
    
    
    26.3
    %SANTIAGO DEL ESTERO
    
    
    51
    
    
    
    1.3
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    2.0
    %TIERRA DEL FUEGO
    
    
    17
    
    
    
    0.4
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    11.8
    %TUCUMAN
    
    
    63
    
    
    
    1.6
    %
    
    
    28
    
    
    
    6.9
    %
    
    
    44.4
    %TOTAL
    
    
    4,064
    
    
    
    100.0
    %
    
    
    404
    
    
    
    100.0
    %
    
    
    9.9
    %
 Source:
    
    Central Bank
  30




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##### Table of Contents



MarketShare of
    
    
    
    
    
    
    MarketMarket
    
    
    Branches
    
    
    Branches
    
    
    
    
    
    
    Share of
    
    
    % ofNumber of
    
    
    Total
    
    
    Share of
    
    
    in City of
    
    
    in City of
    
    
    Branches in
    
    
    Branches in
    
    
    Branchesprovinces
    
    
    Number of
    
    
    Branches in
    
    
    Buenos
    
    
    Buenos
    
    
    the Rest of
    
    
    Rest of
    
    
    in the RestServed
    
    
    Branches
    
    
    Argentina
    
    
    Aires
    
    
    Aires
    
    
    Country
    
    
    Country
    
    
    of Country1 BANCO MACRO S.A. (2)
    
    
    23
    
    
    
    404
    
    
    
    10
    %
    
    
    24
    
    
    
    3
    %
    
    
    380
    
    
    
    12
    %
    
    
    94
    %2 BANCO DE LA NACION ARGENTINA (1)
    
    
    24
    
    
    
    626
    
    
    
    15
    %
    
    
    63
    
    
    
    8
    %
    
    
    563
    
    
    
    17
    %
    
    
    90
    %3 BANCO CREDICOOP COOPERATIVO LIMITADO
    
    
    19
    
    
    
    250
    
    
    
    6
    %
    
    
    40
    
    
    
    5
    %
    
    
    210
    
    
    
    6
    %
    
    
    84
    %4 BANCO PATAGONIA S.A.
    
    
    24
    
    
    
    141
    
    
    
    3
    %
    
    
    38
    
    
    
    5
    %
    
    
    103
    
    
    
    3
    %
    
    
    73
    %5 STANDARD BANK ARGENTINA S.A.
    
    
    18
    
    
    
    99
    
    
    
    2
    %
    
    
    32
    
    
    
    4
    %
    
    
    67
    
    
    
    2
    %
    
    
    68
    %6 BANCO DE GALICIA Y BUENOS AIRES S.A.
    
    
    24
    
    
    
    240
    
    
    
    6
    %
    
    
    78
    
    
    
    10
    %
    
    
    162
    
    
    
    5
    %
    
    
    68
    %7 BBVA BANCO FRANCES
    
    
    24
    
    
    
    242
    
    
    
    6
    %
    
    
    82
    
    
    
    10
    %
    
    
    160
    
    
    
    5
    %
    
    
    66
    %8 BANCO SANTANDER RIO S.A.
    
    
    21
    
    
    
    285
    
    
    
    7
    %
    
    
    97
    
    
    
    12
    %
    
    
    188
    
    
    
    6
    %
    
    
    66
    %9 HSBC
    
    
    19
    
    
    
    118
    
    
    
    3
    %
    
    
    42
    
    
    
    5
    %
    
    
    76
    
    
    
    2
    %
    
    
    64
    %10 CITIBANK
    
    
    16
    
    
    
    65
    
    
    
    2
    %
    
    
    27
    
    
    
    3
    %
    
    
    38
    
    
    
    1
    %
    
    
    58
    %OTHER
    
    
    24
    
    
    
    1,594
    
    
    
    39
    %
    
    
    260
    
    
    
    33
    %
    
    
    1,334
    
    
    
    41
    %
    
    
    78
    %TOTAL
    
    
    24
    
    
    
    4,064
    
    
    
    100.0
    %
    
    
    783
    
    
    
    100.0
    %
    
    
    3,281
    
    
    
    100.0
    %
    
    
    81
    %
 Source: Central Bank(1)
    
    Public sector banks.(2)
    
    Includes the branches of Banco Macro, Banco del Tucumán and Banco Privado.
 Argentine banking regulation
 Overview
          31




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##### Table of Contents



Banking regulation and supervision
 Central Bank supervision
  Permitted activities and investments
  Responsabilidad Patrimonial Computable
 Operations and activities that banks are not permitted to perform
  Liquidity and solvency requirements
 Legal reserve
  Non-liquid assets
   32




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##### Table of Contents



Minimum capital requirements
  Basic minimum capital
  Category
    
    Jurisdiction
    
    Banks
    
    Other Entities (*)I
    
    City of Buenos Aires.
    
    Ps.25 million
    
    Ps.10 millionII
    
    Comodoro Rivadavia 
Rada Tilli, Rawson 
Trelew, Greater
Córdoba, Río Cuarto,
Greater Buenos Aires
(1),
Bahía Blanca 
Cerri, Mar del Plata
 Batán, San Nicolás
 Villa
Constitución, Greater
Mendoza, Neuquén 
Plottier, Viedma 
Carmen de Patagones
 Greater Rosario,
Biedma, General San
Martín, San Justo,
Tercero Arriba,
Campana, Chivilcoy,
Junín, Necochea,
Olavarría, Pergamino,
Pilar, Tandil, Tres
Arroyos, Zárate,
Bariloche,
Castellanos, General
López, San Martín,
Santa Cruz Province
and Tierra del Fuego
Province
    
    Ps.14 million
    
    Ps.8 millionIII
    
    Cities of Greater
Catamarca, Greater
Resistencia, Greater
Corrientes,
Concordia, Jujuy -
Palpalá, La Rioja,
Posadas, Salta,
Greater San Juán, San
Luis  El Chorrillo,
Santiago del Estero -
La Banda, Greater
Tucumán  Tafí Viejo,
Colón, Federación,
Gualeguay,
Gualeguaychú, Paraná,
Uruguay, General
Pedernera, the
Province of La Pampa
and the remaining
towns of the
provinces of Buenos
Aires (2),
Córdoba
(3),
Chubut, Mendoza,
Neuquén, Río Negro
and Santa Fé
(4)
    
    Ps.12.5 million
    
    Ps.6.5 millionIV
    
    The rest of Argentina.
    
    Ps.10 million
    
    Ps.5 million
 (*)
    
    Except credit entities.(1)
    
    Excluding the City of Buenos Aires.(2)
    
    Excluding Marcos Paz, Presidente Perón and San Vicente departments.(3)
    
    Excluding Cruz del Eje department.(4)
    
    Excluding Vera department.
  Description of Argentine Tier 1 and Tier 2 capital regulations
  Responsabilidad Patrimonial Computable
   33




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##### Table of Contents



Requirements for subordinated debt to be computed as Tier 1 Capital
          34




---



##### Table of Contents



pari passu
   bis
 Requirements for subordinated debt to be computed as Tier 2 Capital
           35




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##### Table of Contents



Counterparty risk
     Type of Asset
    
    WeightingCash and cash equivalents
    
    
    0-20
    %Government BondsWith market risk capital requirements and Central Bank 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, term deposit certificates issued by the creditor entity and given as security
    
    
    0
    %A guarantee by Reciprocal Guarantee Companies authorized by the Central Bank, export credit
insurance, documentary credits
    
    
    50
    %Mortgages
    
    
    50%-100
    %Pledges
    
    
    50%-100
    %To the non-financial public sector
    
    
    100
    %To the financial sectorPublic financial institutions with the collection of federal taxes as collateral
    
    
    50
    %To foreign financial institutions or to financial institutions backed by them (rated AA or higher)
    
    
    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
    %
  CAMELBIG Rating
    
    K Factor1
    
    
    0.972
    
    
    1.003
    
    
    1.054
    
    
    1.105
    
    
    1.15
  Interest rate risk
    36




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##### Table of Contents



Market risk
      Temporary regulations
  Period
    
    Alpha1 (applied to public sector  financing)
    
    
    Alpha2 (applied to interest 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
  Consequences of a failure to meet minimum capital requirements
  (i)
    
    non-compliance reported by the institutions: the institution must meet the required capital
no later than in the second month after non-compliance was incurred or submit a restructuring
plan within 30 calendar days following the last day of the month in which such non-compliance
occurred.
  37




---



##### Table of Contents



In addition, non-compliance with minimum capital requirements will entail a number of
consequences for the financial institution, including prohibition from opening branches in
Argentina or in other countries, establishing representative offices abroad, or owning equity
in foreign financial institutions, as well as a prohibition from paying cash dividends. Also,
the Superintendency may appoint a delegate, who shall have the powers set forth by the
Financial Institutions Law.
 (ii)
    
    non-compliance detected by the Superintendency: the institution must file its defense within
30 calendar days after being served notice by the Superintendency. If no defense is filed, or
if the defense is disallowed, the non-compliance will be deemed to be final, and the procedure
described in item (i) will apply.
 Requirements applicable to dividend distribution
   (i)
    
    the financial institution is subject to a liquidation procedure or the mandatory transfer of
assets by the Central Bank in accordance with section 34 or 35 bisof the Financial
Institutions Law;
 (ii)
    
    the institution is receiving financial assistance from the Central Bank;
 (iii)
    
    the institution is not in compliance or has failed to comply on a timely basis with its
reporting obligations to the Central Bank; or
 (iv)
    
    the institution is not in compliance with minimum capital requirements (both on an individual
and consolidated basis and excluding any individual franchise granted by the Superintendency)
and with minimum cash reserves (on average), whether in pesos, foreign currency or securities
issued by the public sector.
  Operational risk
    
    
    internal fraud;
 
    
    external fraud;
 
    
    employment practices and workplace safety;
 
    
    clients, products and business practices;
 
    
    damage to physical assets;
 
    
    business disruption and system failures, and
 
    
    execution, delivery and process management.
   38




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##### Table of Contents



Minimum cash reserve requirements
       39




---



##### Table of Contents



Rate
    
    
    Rate (%)(%)
    
    
    (foreignItem
    
    (pesos)
    
    
    currency)1-Checking account deposits
    
    
    19
    
    
    
    2-Savings account, basic account, and free universal account
    
    
    19
    
    
    
    203-Legal custody accounts, special accounts for savings clubs, Unemployment Fund for Construction Industry Workers (Fondo de Desempleo
para los trabajadores de la Industria de la Construcción) and Salary payment, special checking accounts for legal entities and social
security savings accounts
    
    
    19
    
    
    
    204-Other demand deposits and liabilities, 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
    
    
    
    205-Unused balances of advances in checking accounts under executed overdraft agreements
    
    
    19
    
    
    
    6-Deposits in checking accounts of non-bank financial institutions, computed for purposes of meeting their required minimum cash reserve
    
    
    100
    
    
    
    7-Time deposits, liabilities under acceptances, repurchase agreements (including responsibilities for sale or transfer of credits to
agents different from financial institutions), stock-exchange repos (cautions and stock exchange passive repos), constant-term
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, 12, 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
    
    
    
    
    
    
    2(vi) More than 365 days
    
    
    
    
    
    
    8-Liabilities owed due to foreign facilities (not executed by means of time deposits or debt securities)
    
    
    
    
    
    
    9-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
    
    
    
    
    
    
    10-Liabilities owing to the Trust Fund for Assistance to Financial and Insurance Institutions
    
    
    11-Demand and time deposits made upon a court order with funds arising from cases pending before the court, and the related immobilized
balances
    
    
    10
    
    
    
    1012- Deposits as assets of a mutual fund
    
    
    19
    
    
    
    2013-Special deposits related to inflows of funds. Decree 616/2005
    
    
    
    
    
    
    10014-Deposits and other liabilities in pesos (excluding the Unemployment Fund for Construction Industry Workers (Fondo de Desempleo
para los trabajadores de la Industria de la Construcción)) which return is higher than 15% of BADLAR rates average, corresponding to
the preceding month
    
    
    100
    
    
    
    15-Time deposits in nominative, non-transferable peso-denominated certificates, belonging to public sector holders, with the right to
demand early withdrawal in less than 30 days from its setting up.
    
    
    16
    
    
    
    
   (i)
    
    Cash (in treasury, cash in custody at other financial institutions and cash in
transit and value carriers).
 (ii)
    
    Accounts maintained by financial institutions with the Central Bank in pesos.
 (iii)
    
    Accounts of minimum cash maintained by financial institutions with the Central Bank
in U.S. dollars, or other foreign currency.
 (iv)
    
    Special guarantee accounts for the benefit of electronic clearing houses and to cover
settlement of credit card and ATM transactions.
 (v)
    
    Checking accounts maintained by non-bank financial institutions with commercial banks
for the purpose of meeting the minimum reserve requirement.
 (vi)
    
    Special accounts maintained with the Central Bank for transactions involving social
security payments by the ANSES.
 (vii)
    
    Minimum cash sub-account 60, authorized in the Registration and Settlement Central
for Public Debt and Financial Trusts  CRYL (Central de Registro y Liquidación de
Pasivos Públicos y Fideicomisos Financieros  CRYL) for public securities and securities
issued by the Central Bank, at their market value.
       40




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##### Table of Contents



Internal liquidity policies of financial institutions
  Credit risk regulation
  Risk concentration
    Diversification of risk
 Degree of risk
 Limits for affiliated individuals
    (i)
    
    holding or controlling, directly or indirectly, 25% or more of the total voting stock
of the other person;
 (ii)
    
    having held 50% or more of the total voting stock of the other person at the time of
the last election of directors or managers;
 (iii)
    
    holding, directly or indirectly, any other kind of participation in the other person
(even if it represents a participating interest below the above mentioned percentages) so
as to be able to prevail in the institutions decision making; or
 (iv)
    
    when the Central Bank board of directors  pursuant to a proposal from the
Superintendency  determines that a person is exercising a controlling influence over the
financial institution.
   41




---



##### Table of Contents



(a)
    
    Guaranteed operations: 10% of the RPC.
 (b)
    
    Non-guaranteed operations: 5% of the RPC.
  AdditionalLender rating
    
    Borrower rating
    
    
    General
    
    
    Tranche I (*)
    
    
    Tranche II (**)
    
    
    Tranche III (***)1, 2 or 3
    
    
    1
    
    
    
    100
    %
    
    
    25
    %
    
    
    25
    %
    
    
    2
    
    
    
    20
    %
    
    
    25
    %
    
    
    25
    %
    
    
    55
    %3
    
    
    
    10
    %
    
    
    20
    %
    
    
    20
    %
    
    
    4 or 5
    
    
    
    10
    %
    
    
    
    
    
    
    
    
    
    
    4 or 5
    
    
    1 to 5
    
    
    
    0
    %
    
    
    
    
    
    
    
    
    
    
    (iii) Related companies that provide complementary services:Controlling financial
    
    
    
    
    
    
    AdditionalComplementary services
    
    entity
    
    
    General
    
    
    Tranche I (***)
    
    
    Tranche II
    
    
    Tranche IIIStock exchange agent,
financial assistance
based on leasing and
factoring, temporal
adquisition of
shares
    
    
    1
    
    
    
    100
    %
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    10
    %
    
    
    90
    %
    
    
    
    
    
    
    3
    
    
    
    10
    %
    
    
    
    
    
    
    
    
    
    
    4 o 5
    
    
    
    0
    %
    
    
    
    
    
    
    
    
    
    
    Controlling financial
    
    
    
    
    
    
    AdditionalComplementary services
    
    entity
    
    
    General
    
    
    Tranche I (*)
    
    
    Tranche II (**)
    
    
    Tranche III (***)Credit and debit card
issuers or similar
services
    
    
    1
    
    
    
    100
    %
    
    
    25
    %
    
    
    25
    %
    
    
    2
    
    
    
    20
    %
    
    
    25
    %
    
    
    25
    %
    
    
    55
    %3
    
    
    
    10
    %
    
    
    20
    %
    
    
    20
    %
    
    
    4 o 5
    
    
    
    0
    %
    
    
    
    
    
    
    
    
    
    
    
 (*)
    
    Subject to certain conditions.(**)
    
    Only for guaranteed financings that comply with the conditions for Tranche I.(***)
    
    Only for financings with an inicial term up to 180 days.
  (a)
    
    rated investment grade: 10% of the RPC.
 (b)
    
    with a lower rating:
 
    
    5% for unsecured transactions
 
    
    10% for secured transactions
    42




---



##### Table of Contents



Foreign exchange system
  Mercado Único y Libre de Cambios
  See Item 10.D  Additional Information.
 Foreign currency lending capacity
 Préstamos BID N° 119/OC-AR
  General exchange position
    43




---



##### Table of Contents



Foreign currency net global position
      
   Debt classification and loan loss provisions
 Credit portfolio
    44




---



##### Table of Contents



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/Under
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 / Under
negotiation or refinancing
agreement
    
    Borrowers who are unable to comply with their obligations as agreed with the bank
and, therefore, formally state, within 60 calendar days after the maturity date,
their intention to refinance such debts. The borrower must enter into a refinancing
agreement with the bank within 90 calendar days (if up to two lenders are involved)
or 180 calendar days (if more than two lenders are involved) after the payment
default date. If no agreement has been reached within the established deadline, the
borrower must be reclassified to the next category 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 irrecoverable 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 with the financial institution.Irrecoverable 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
Seguro de Depósitos S.A.(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 in respect of which a legal action seeking collection has been filed or loans having
payment obligations overdue for more than 180 calendar days, but less than 365 calendar
days.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 according to Central Bank Rules.
  45




---



##### Table of Contents



Minimum credit provisions
  With Preferred
    
    Without PreferredCategory
    
    Guarantees
    
    GuaranteesIn normal situation and Performing
    
    
    1
    %
    
    
    1
    %Under observation and Low risk
    
    
    3
    %
    
    
    5
    %Under negotiation or refinancing agreement
    
    
    6
    %
    
    
    12
    %Troubled and Medium Risk
    
    
    12
    %
    
    
    25
    %With high risk of insolvency and High Risk
    
    
    25
    %
    
    
    50
    %Irrecoverable
    
    
    50
    %
    
    
    100
    %Irrecoverable according to Central Bank Rules
    
    
    100
    %
    
    
    100
    %
   Minimum frequency for classification review
  Allowances for loan losses
  Priority rights of depositors
  Mandatory deposit insurance system
  Seguro de Depósitos Sociedad Anónima
    46




---



##### Table of Contents



Capital markets
  sociedades de bolsa sociedad de bolsa sociedad de bolsa
  fondos comunes de
inversión
 Financial institutions in economic difficulties
 plan de regularización y saneamiento
   
    
    adoption of list measures to capitalize or increase the capital of the financial
institution;
 
    
    revoke the approval granted to the shareholders of the financial institution to hold
interests therein;
  47




---



##### Table of Contents




    
    restructure and/or transfer assets and liabilities;
 
    
    grant temporary exemptions to compliance with technical regulations and/or payment of
charges and penalties arising from such flawed compliance; or
 
    
    appoint a delegate or auditor (interventor) that may prospectively replace the board of
directors of the financial institution.
 Revocation of the license to operate as financial institution
   Liquidation of financial institutions
  Bankruptcy of financial institutions
    Money laundering
      Oficial de Cumplimiento
  48




---



##### Table of Contents



Merger, consolidation and transfer of goodwill
  Financial system restructuring unit
  C. Organizational Structure
 Subsidiaries
  Banco Macro S.A.sdirect and indirect equity interestSubsidiary
    
    Percentage of Capital Stock and possible votesBanco del Tucumán S.A. (1)
    
    
    89.932
    %Banco Privado de Inversiones S.A. (1)
    
    
    99.985
    %Macro Bank Limited (2)(3)
    
    
    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(3)
    
    Consolidates with Sud Asesores (ROU) S.A. (100% of capital stock and voting rights)
  49




---



##### Table of Contents



D. Property, plants and equipment
 Property
     Selected Statistical Information
 Operating and Financial Review and
Prospects.
 Average balance sheets, interest earned on interest-earning assets and interest paid on
interest-bearing liabilities
  Years ended December 31,2008
    
    
    2009
    
    
    2010Average
    
    
    
    
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    
    
    
    
    AverageAverage
    
    
    Interest
    
    
    Nominal
    
    
    Average
    
    
    Interest
    
    
    Nominal
    
    
    Average
    
    
    Interest
    
    
    NominalBalance
    
    
    Earned/(Paid)
    
    
    Rate
    
    
    Balance
    
    
    Earned/(Paid)
    
    
    Rate
    
    
    Balance
    
    
    Earned/(Paid)
    
    
    Rate(in thousands of pesos, except percentages)ASSETSInterest-earning assetsGovernment
securities (1)Pesos
    
    
    4,346,565
    
    
    
    540,302
    
    
    
    12.43
    %
    
    
    5,124,739
    
    
    
    785,628
    
    
    
    15.33
    %
    
    
    5,366,274
    
    
    
    853,997
    
    
    
    15.91
    %Dollars
    
    
    215,732
    
    
    
    (5,785
    )
    
    
    (2.68
    %)
    
    
    486,811
    
    
    
    420,898
    
    
    
    86,46
    %
    
    
    378,908
    
    
    
    72,942
    
    
    
    19.25
    %Total
    
    
    4,562,297
    
    
    
    534,517
    
    
    
    11.72
    %
    
    
    5,611,550
    
    
    
    1,206,526
    
    
    
    21.50
    %
    
    
    5,745,182
    
    
    
    926,939
    
    
    
    16.13
    %LoansPrivate and
financial SectorPesos
    
    
    8,552,950
    
    
    
    1,786,608
    
    
    
    20.89
    %
    
    
    8,633,930
    
    
    
    2,008,428
    
    
    
    23.26
    %
    
    
    10,589,164
    
    
    
    2,256,182
    
    
    
    21.31
    %Dollars
    
    
    1,821,403
    
    
    
    143,916
    
    
    
    7.90
    %
    
    
    2,225,961
    
    
    
    189,730
    
    
    
    8.52
    %
    
    
    2,062,237
    
    
    
    113,549
    
    
    
    5.51
    %Total
    
    
    10,374,353
    
    
    
    1,930,524
    
    
    
    18.61
    %
    
    
    10,859,891
    
    
    
    2,198,158
    
    
    
    20.24
    %
    
    
    12,651,401
    
    
    
    2,369,731
    
    
    
    18.73
    %Public SectorPesos
    
    
    755,364
    
    
    
    38,058
    
    
    
    5.04
    %
    
    
    302,441
    
    
    
    24,197
    
    
    
    8.00
    %
    
    
    289,576
    
    
    
    118,618
    
    
    
    40.96
    %Total
    
    
    755,364
    
    
    
    38,058
    
    
    
    5.04
    %
    
    
    302,441
    
    
    
    24,197
    
    
    
    8.00
    %
    
    
    289,576
    
    
    
    118,618
    
    
    
    40.96
    %Deposits with the
Central BankPesos
    
    
    1,677,710
    
    
    
    9,386
    
    
    
    0.56
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Dollars
    
    
    598,344
    
    
    
    4,998
    
    
    
    0.84
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    2,276,054
    
    
    
    14,384
    
    
    
    0.63
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other assetsPesos
    
    
    1,078,256
    
    
    
    174,081
    
    
    
    16.14
    %
    
    
    1,075,212
    
    
    
    194,537
    
    
    
    18.09
    %
    
    
    763,631
    
    
    
    82,886
    
    
    
    10.85
    %Dollars
    
    
    539,237
    
    
    
    46,871
    
    
    
    8.69
    %
    
    
    1,118,378
    
    
    
    87,515
    
    
    
    7.83
    %
    
    
    2,475,530
    
    
    
    57,598
    
    
    
    2.33
    %Total
    
    
    1,617,493
    
    
    
    220,952
    
    
    
    13.66
    %
    
    
    2,193,590
    
    
    
    282,052
    
    
    
    12.86
    %
    
    
    3,239,161
    
    
    
    140,484
    
    
    
    4.34
    %
  50




---



##### Table of Contents



Years ended December 31,2008
    
    
    2009
    
    
    2010Average
    
    
    
    
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    
    
    
    
    AverageAverage
    
    
    Interest
    
    
    Nominal
    
    
    Average
    
    
    Interest
    
    
    Nominal
    
    
    Average
    
    
    Interest
    
    
    NominalBalance
    
    
    Earned/(Paid)
    
    
    Rate
    
    
    Balance
    
    
    Earned/(Paid)
    
    
    Rate
    
    
    Balance
    
    
    Earned/(Paid)
    
    
    Rate(in thousands of pesos, except percentages)Total interest-earning
assetsPesos
    
    
    16,410,845
    
    
    
    2,548,435
    
    
    
    15.53
    %
    
    
    15,136,322
    
    
    
    3,012,790
    
    
    
    19.90
    %
    
    
    17,008,645
    
    
    
    3,311,683
    
    
    
    19.47
    %Dollars
    
    
    3,174,716
    
    
    
    190,000
    
    
    
    5.98
    %
    
    
    3,831,150
    
    
    
    698,143
    
    
    
    18.22
    %
    
    
    4,916,675
    
    
    
    244,089
    
    
    
    4.96
    %Total
    
    
    19,585,561
    
    
    
    2,738,435
    
    
    
    13.98
    %
    
    
    18,967,472
    
    
    
    3,710,933
    
    
    
    19.56
    %
    
    
    21,925,320
    
    
    
    3,555,772
    
    
    
    16.22
    %Non interest-earning
assetsCash and due from
banksPesos
    
    
    539,344
    
    
    
    
    
    
    
    
    
    
    
    687,021
    
    
    
    
    
    
    
    
    
    
    
    996,459Dollars
    
    
    286,879
    
    
    
    
    
    
    
    
    
    
    
    513,818
    
    
    
    
    
    
    
    
    
    
    
    617,398Euros
    
    
    8,589
    
    
    
    
    
    
    
    
    
    
    
    11,312
    
    
    
    
    
    
    
    
    
    
    
    25,449Other
    
    
    1,405
    
    
    
    
    
    
    
    
    
    
    
    1,045
    
    
    
    
    
    
    
    
    
    
    
    1,697Total
    
    
    836,217
    
    
    
    
    
    
    
    
    
    
    
    1,213,196
    
    
    
    
    
    
    
    
    
    
    
    1,641,003Investments in other
companiesPesos
    
    
    16,911
    
    
    
    
    
    
    
    
    
    
    
    9,755
    
    
    
    
    
    
    
    
    
    
    
    9,295Dollars
    
    
    1,275
    
    
    
    
    
    
    
    
    
    
    
    1,015
    
    
    
    
    
    
    
    
    
    
    
    1,170Total
    
    
    18,186
    
    
    
    
    
    
    
    
    
    
    
    10,770
    
    
    
    
    
    
    
    
    
    
    
    10,465Property and
equipment and
miscellaneous and
intangible assets
and items pending of
allocationPesos
    
    
    801,674
    
    
    
    
    
    
    
    
    
    
    
    763,325
    
    
    
    
    
    
    
    
    
    
    
    798,390Total
    
    
    801,674
    
    
    
    
    
    
    
    
    
    
    
    763,325
    
    
    
    
    
    
    
    
    
    
    
    798,390Allowance for loan
lossesPesos
    
    
    (203,344
    )
    
    
    
    
    
    
    
    
    
    
    (367,163
    )
    
    
    
    
    
    
    
    
    
    
    (368,458
    )Dollars
    
    
    (39,776
    )
    
    
    
    
    
    
    
    
    
    
    (59,278
    )
    
    
    
    
    
    
    
    
    
    
    (60,874
    )Total
    
    
    (243,120
    )
    
    
    
    
    
    
    
    
    
    
    (426,441
    )
    
    
    
    
    
    
    
    
    
    
    (429,332
    )Other assetsPesos
    
    
    578,682
    
    
    
    
    
    
    
    
    
    
    
    1,942,877
    
    
    
    
    
    
    
    
    
    
    
    2,440,742Dollars
    
    
    288,686
    
    
    
    
    
    
    
    
    
    
    
    1,492,830
    
    
    
    
    
    
    
    
    
    
    
    1,625,358Euros
    
    
    66
    
    
    
    
    
    
    
    
    
    
    
    38
    
    
    
    
    
    
    
    
    
    
    
    66,344Total
    
    
    867,434
    
    
    
    
    
    
    
    
    
    
    
    3,435,745
    
    
    
    
    
    
    
    
    
    
    
    4,132,444Total non
interest-earning
assetsPesos
    
    
    1,733,267
    
    
    
    
    
    
    
    
    
    
    
    3,035,815
    
    
    
    
    
    
    
    
    
    
    
    3,876,428Dollars
    
    
    537,064
    
    
    
    
    
    
    
    
    
    
    
    1,948,385
    
    
    
    
    
    
    
    
    
    
    
    2,183,052Euros
    
    
    8,655
    
    
    
    
    
    
    
    
    
    
    
    11,350
    
    
    
    
    
    
    
    
    
    
    
    91,793Other
    
    
    1,405
    
    
    
    
    
    
    
    
    
    
    
    1,045
    
    
    
    
    
    
    
    
    
    
    
    1,697Total
    
    
    2,280,391
    
    
    
    
    
    
    
    
    
    
    
    4,996,595
    
    
    
    
    
    
    
    
    
    
    
    6,152,970TOTAL ASSETSPesos
    
    
    18,144,112
    
    
    
    
    
    
    
    
    
    
    
    18,172,137
    
    
    
    
    
    
    
    
    
    
    
    20,885,073Dollars
    
    
    3,711,780
    
    
    
    
    
    
    
    
    
    
    
    5,779,535
    
    
    
    
    
    
    
    
    
    
    
    7,099,727Euros
    
    
    8,655
    
    
    
    
    
    
    
    
    
    
    
    11,350
    
    
    
    
    
    
    
    
    
    
    
    91,793Other
    
    
    1,405
    
    
    
    
    
    
    
    
    
    
    
    1,045
    
    
    
    
    
    
    
    
    
    
    
    1,697Total
    
    
    21,865,952
    
    
    
    
    
    
    
    
    
    
    
    23,964,067
    
    
    
    
    
    
    
    
    
    
    
    28,078,290LIABILITIESInterest-bearing
liabilitiesSavings accountsPesos
    
    
    2,822,961
    
    
    
    29,508
    
    
    
    1.05
    %
    
    
    2,842,075
    
    
    
    31,500
    
    
    
    1.11
    %
    
    
    2,969,340
    
    
    
    22,594
    
    
    
    0.76
    %Dollars
    
    
    451,892
    
    
    
    2,734
    
    
    
    0.61
    %
    
    
    863,593
    
    
    
    2,017
    
    
    
    0.23
    %
    
    
    908,486
    
    
    
    1,118
    
    
    
    0.12
    %Total
    
    
    3,274,853
    
    
    
    32,242
    
    
    
    0.98
    %
    
    
    3,705,668
    
    
    
    33,517
    
    
    
    0.90
    %
    
    
    3,877,826
    
    
    
    23,712
    
    
    
    0.61
    %Time depositsPesos
    
    
    6,556,086
    
    
    
    873,787
    
    
    
    13.33
    %
    
    
    7,446,052
    
    
    
    1,079,924
    
    
    
    14.50
    %
    
    
    8,944,481
    
    
    
    929,682
    
    
    
    10.39
    %Dollars
    
    
    1,717,511
    
    
    
    63,970
    
    
    
    3.72
    %
    
    
    2,648,975
    
    
    
    68,260
    
    
    
    2.58
    %
    
    
    2,646,095
    
    
    
    26,803
    
    
    
    1.01
    %Total
    
    
    8,273,597
    
    
    
    937,757
    
    
    
    11.33
    %
    
    
    10,095,027
    
    
    
    1,148,184
    
    
    
    11.37
    %
    
    
    11,590,576
    
    
    
    956,485
    
    
    
    8.25
    %Borrowing from the
Central BankPesos
    
    
    330,532
    
    
    
    33,713
    
    
    
    10.20
    %
    
    
    31,942
    
    
    
    1,856
    
    
    
    5,81
    %
    
    
    
    
    
    
    
    
    
    
    0.00
    %Total
    
    
    330,532
    
    
    
    33,713
    
    
    
    10.20
    %
    
    
    31,942
    
    
    
    1,856
    
    
    
    5.81
    %
    
    
    
    
    
    
    
    
    
    
    0.00
    %
  51




---



##### Table of Contents



Years ended December 31,2008
    
    
    2009
    
    
    2010Average
    
    
    
    
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    
    
    
    
    AverageAverage
    
    
    Interest
    
    
    Nominal
    
    
    Average
    
    
    Interest
    
    
    Nominal
    
    
    Average
    
    
    Interest
    
    
    NominalBalance
    
    
    Earned/(Paid)
    
    
    Rate
    
    
    Balance
    
    
    Earned/(Paid)
    
    
    Rate
    
    
    Balance
    
    
    Earned/(Paid)
    
    
    Rate(in thousands of pesos, except percentages)Borrowings from
other financial
institutionsPesos
    
    
    121,897
    
    
    
    11,847
    
    
    
    9.72
    %
    
    
    99,791
    
    
    
    9,269
    
    
    
    9.29
    %
    
    
    139,226
    
    
    
    15,888
    
    
    
    11.41
    %Dollars
    
    
    287,667
    
    
    
    19,539
    
    
    
    6.79
    %
    
    
    217,477
    
    
    
    17,190
    
    
    
    7.90
    %
    
    
    50,060
    
    
    
    1,837
    
    
    
    3.67
    %Total
    
    
    409,564
    
    
    
    31,386
    
    
    
    7.66
    %
    
    
    317,268
    
    
    
    26,459
    
    
    
    8.34
    %
    
    
    189,286
    
    
    
    17,725
    
    
    
    9.36
    %Corporate BondsPesos
    
    
    309,263
    
    
    
    34,055
    
    
    
    11.01
    %
    
    
    238,250
    
    
    
    25,631
    
    
    
    10.76
    %
    
    
    197,392
    
    
    
    21,236
    
    
    
    10.76
    %Dollars
    
    
    915,000
    
    
    
    83,911
    
    
    
    9.17
    %
    
    
    965,017
    
    
    
    89,439
    
    
    
    9.27
    %
    
    
    1,003,112
    
    
    
    92,843
    
    
    
    9.26
    %Total
    
    
    1,224,263
    
    
    
    117,966
    
    
    
    9.64
    %
    
    
    1,203,267
    
    
    
    115,070
    
    
    
    9.56
    %
    
    
    1,200,504
    
    
    
    114,079
    
    
    
    9.50
    %Other liabilitiesPesos
    
    
    450,926
    
    
    
    29,528
    
    
    
    6.55
    %
    
    
    72,774
    
    
    
    2,911
    
    
    
    4.00
    %
    
    
    
    
    
    
    
    
    
    
    0.00
    %Dollars
    
    
    31,530
    
    
    
    3,183
    
    
    
    10.10
    %
    
    
    
    
    
    
    
    
    
    
    0.00
    %
    
    
    
    
    
    
    
    
    
    
    0.00
    %Total
    
    
    482,456
    
    
    
    32,711
    
    
    
    6.78
    %
    
    
    72,774
    
    
    
    2,911
    
    
    
    4.00
    %
    
    
    
    
    
    
    
    
    
    
    0.00
    %Total
Interest-bearing
liabilitiesPesos
    
    
    10,591,665
    
    
    
    1,012,438
    
    
    
    9.56
    %
    
    
    10,730,884
    
    
    
    1,151,091
    
    
    
    10.73
    %
    
    
    12,250,439
    
    
    
    989,400
    
    
    
    8.08
    %Dollars
    
    
    3,403,600
    
    
    
    173,337
    
    
    
    5.09
    %
    
    
    4,695,062
    
    
    
    176,906
    
    
    
    3.77
    %
    
    
    4,607,753
    
    
    
    122,601
    
    
    
    2.66
    %Total
    
    
    13,995,265
    
    
    
    1,185,775
    
    
    
    8.47
    %
    
    
    15,425,946
    
    
    
    1,327,997
    
    
    
    8.61
    %
    
    
    16,858,192
    
    
    
    1,112,001
    
    
    
    6.60
    %Non-interest bearing
liabilities and
Shareholders equityDemand depositsPesos
    
    
    3,665,895
    
    
    
    
    
    
    
    
    
    
    
    3,930,465
    
    
    
    
    
    
    
    
    
    
    
    5,606,430Dollars
    
    
    8,059
    
    
    
    
    
    
    
    
    
    
    
    17,092
    
    
    
    
    
    
    
    
    
    
    
    213,440Total
    
    
    3,673,954
    
    
    
    
    
    
    
    
    
    
    
    3,947,557
    
    
    
    
    
    
    
    
    
    
    
    5,819,870Other liabilitiesPesos
    
    
    906,424
    
    
    
    
    
    
    
    
    
    
    
    1,041,313
    
    
    
    
    
    
    
    
    
    
    
    1,113,739Dollars
    
    
    490,452
    
    
    
    
    
    
    
    
    
    
    
    464,579
    
    
    
    
    
    
    
    
    
    
    
    452,516Euros
    
    
    6,916
    
    
    
    
    
    
    
    
    
    
    
    10,944
    
    
    
    
    
    
    
    
    
    
    
    76,209Other
    
    
    75
    
    
    
    
    
    
    
    
    
    
    
    61
    
    
    
    
    
    
    
    
    
    
    
    294Total
    
    
    1,403,867
    
    
    
    
    
    
    
    
    
    
    
    1,516,897
    
    
    
    
    
    
    
    
    
    
    
    1,642,758Minority InterestPesos
    
    
    14,294
    
    
    
    
    
    
    
    
    
    
    
    17,931
    
    
    
    
    
    
    
    
    
    
    
    24,289Total
    
    
    14,294
    
    
    
    
    
    
    
    
    
    
    
    17,931
    
    
    
    
    
    
    
    
    
    
    
    24,289Shareholders equityPesos
    
    
    2,778,572
    
    
    
    
    
    
    
    
    
    
    
    3,055,736
    
    
    
    
    
    
    
    
    
    
    
    3,733,181Total
    
    
    2,778,572
    
    
    
    
    
    
    
    
    
    
    
    3,055,736
    
    
    
    
    
    
    
    
    
    
    
    3,733,181Total noninterest
bearing liabilities
and shareholders
equityPesos
    
    
    7,365,185
    
    
    
    
    
    
    
    
    
    
    
    8,045,445
    
    
    
    
    
    
    
    
    
    
    
    10,477,639Dollars
    
    
    498,511
    
    
    
    
    
    
    
    
    
    
    
    481,671
    
    
    
    
    
    
    
    
    
    
    
    665,956Euros
    
    
    6,916
    
    
    
    
    
    
    
    
    
    
    
    10,944
    
    
    
    
    
    
    
    
    
    
    
    76,209Other
    
    
    75
    
    
    
    
    
    
    
    
    
    
    
    61
    
    
    
    
    
    
    
    
    
    
    
    294Total
    
    
    7,870,687
    
    
    
    
    
    
    
    
    
    
    
    8,538,121
    
    
    
    
    
    
    
    
    
    
    
    11,220,098TOTAL LIABILITIES AND
SHAREHOLDERS EQUITYPesos
    
    
    17,956,850
    
    
    
    
    
    
    
    
    
    
    
    18,776,329
    
    
    
    
    
    
    
    
    
    
    
    22,728,078Dollars
    
    
    3,902,111
    
    
    
    
    
    
    
    
    
    
    
    5,176,733
    
    
    
    
    
    
    
    
    
    
    
    5,273,709Euros
    
    
    6,916
    
    
    
    
    
    
    
    
    
    
    
    10,944
    
    
    
    
    
    
    
    
    
    
    
    76,209Other
    
    
    75
    
    
    
    
    
    
    
    
    
    
    
    61
    
    
    
    
    
    
    
    
    
    
    
    294Total
    
    
    21,865,952
    
    
    
    
    
    
    
    
    
    
    
    23,964,067
    
    
    
    
    
    
    
    
    
    
    
    28,078,290
 (1)
    
    Includes instruments issued by the Central Bank. The interest earned/paid includes
changes due to mark-to-market of those securities.
  52




---



##### Table of Contents



Changes in interest income and interest expense; volume and rate analysis
  December 2008/December 2007
    
    
    December 2009/December 2008
    
    
    December 2010/December 2009Increase (Decrease) Due to Changes in
    
    
    Increase (Decrease) Due to Changes in
    
    
    Increase (Decrease) Due to Changes inVolume
    
    
    Rate
    
    
    Net Change
    
    
    Volume
    
    
    Rate
    
    
    Net Change
    
    
    Volume
    
    
    Rate
    
    
    Net Change(in thousands of pesos)ASSETSInterest-earning assetsGovernment securitiesPesos
    
    
    52,542
    
    
    
    66,283
    
    
    
    118,825
    
    
    
    119,295
    
    
    
    126,031
    
    
    
    245,326
    
    
    
    38,438
    
    
    
    29,931
    
    
    
    68,369Dollars
    
    
    (929
    )
    
    
    (20,454
    )
    
    
    (21,383
    )
    
    
    234,376
    
    
    
    192,307
    
    
    
    426,683
    
    
    
    (20,772
    )
    
    
    (327,184
    )
    
    
    (347,956
    )Total
    
    
    51,613
    
    
    
    45,829
    
    
    
    97,442
    
    
    
    353,671
    
    
    
    318,338
    
    
    
    672,009
    
    
    
    17,666
    
    
    
    (297,253
    )
    
    
    (279,587
    )LoansPrivate and financial sectorPesos
    
    
    499,276
    
    
    
    245,687
    
    
    
    744,963
    
    
    
    18,838
    
    
    
    202,982
    
    
    
    221,820
    
    
    
    416,592
    
    
    
    (168,838
    )
    
    
    247,754Dollars
    
    
    46,822
    
    
    
    18,279
    
    
    
    65,101
    
    
    
    34,483
    
    
    
    11,331
    
    
    
    45,814
    
    
    
    (9,015
    )
    
    
    (67,166
    )
    
    
    (76,181
    )Total
    
    
    546,098
    
    
    
    263,966
    
    
    
    810,064
    
    
    
    53,321
    
    
    
    214,313
    
    
    
    267,634
    
    
    
    407,577
    
    
    
    (236,004
    )
    
    
    171,573Public sectorPesos
    
    
    (635
    )
    
    
    (12,882
    )
    
    
    (13,517
    )
    
    
    (36,236
    )
    
    
    22,375
    
    
    
    (13,861
    )
    
    
    (5,270
    )
    
    
    99,691
    
    
    
    94,421DollarsTotal
    
    
    (635
    )
    
    
    (12,882
    )
    
    
    (13,517
    )
    
    
    (36,236
    )
    
    
    22,375
    
    
    
    (13,861
    )
    
    
    (5,270
    )
    
    
    99,691
    
    
    
    94,421Deposits with the Central
BankPesos
    
    
    1,678
    
    
    
    (3,200
    )
    
    
    (1,522
    )
    
    
    
    
    
    
    (9,386
    )
    
    
    (9,386
    )
    
    
    
    
    
    
    
    
    
    
    Dollars
    
    
    247
    
    
    
    (2,723
    )
    
    
    (2,476
    )
    
    
    
    
    
    
    (4,998
    )
    
    
    (4,998
    )
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    1,925
    
    
    
    (5,923
    )
    
    
    (3,998
    )
    
    
    
    
    
    
    (14,384
    )
    
    
    (14,384
    )
    
    
    
    
    
    
    
    
    
    
    Other assetsPesos
    
    
    (34,064
    )
    
    
    70,104
    
    
    
    36,040
    
    
    
    (551
    )
    
    
    21,007
    
    
    
    20,456
    
    
    
    (33,820
    )
    
    
    (77,831
    )
    
    
    (111,651
    )Dollars
    
    
    10,615
    
    
    
    12,593
    
    
    
    23,208
    
    
    
    45,319
    
    
    
    (4,675
    )
    
    
    40,644
    
    
    
    31,577
    
    
    
    (61,494
    )
    
    
    (29,917
    )Total
    
    
    (23,449
    )
    
    
    82,697
    
    
    
    59,248
    
    
    
    44,768
    
    
    
    16,332
    
    
    
    61,100
    
    
    
    (2,243
    )
    
    
    (139,325
    )
    
    
    (141,568
    )Total interest-earning assetsPesos
    
    
    518,797
    
    
    
    365,992
    
    
    
    884,789
    
    
    
    101,346
    
    
    
    363,009
    
    
    
    464,355
    
    
    
    415,940
    
    
    
    (117,047
    )
    
    
    298,893Dollars
    
    
    56,755
    
    
    
    7,695
    
    
    
    64,450
    
    
    
    314,178
    
    
    
    193,965
    
    
    
    508,143
    
    
    
    1,790
    
    
    
    (455,844
    )
    
    
    (454,054
    )Total
    
    
    575,552
    
    
    
    373,687
    
    
    
    949,239
    
    
    
    415,524
    
    
    
    556,974
    
    
    
    972,498
    
    
    
    417,730
    
    
    
    (572,891
    )
    
    
    (155,161
    )LIABILITIESInterest-bearing liabilitiesSavings accountsPesos
    
    
    3,513
    
    
    
    (1,318
    )
    
    
    2,195
    
    
    
    212
    
    
    
    1,780
    
    
    
    1,992
    
    
    
    968
    
    
    
    (9,874
    )
    
    
    (8,906
    )Dollars
    
    
    442
    
    
    
    (778
    )
    
    
    (336
    )
    
    
    962
    
    
    
    (1,679
    )
    
    
    (717
    )
    
    
    55
    
    
    
    (954
    )
    
    
    (899
    )Total
    
    
    3,955
    
    
    
    (2,096
    )
    
    
    1,859
    
    
    
    1,174
    
    
    
    101
    
    
    
    1,275
    
    
    
    1,023
    
    
    
    (10,828
    )
    
    
    (9,805
    )Time depositsPesos
    
    
    262,038
    
    
    
    189,926
    
    
    
    451,964
    
    
    
    129,075
    
    
    
    77,062
    
    
    
    206,137
    
    
    
    155,745
    
    
    
    (305,987
    )
    
    
    (150,242
    )Dollars
    
    
    10,417
    
    
    
    5,630
    
    
    
    16,047
    
    
    
    24,002
    
    
    
    (19,712
    )
    
    
    4,290
    
    
    
    (29
    )
    
    
    (41,428
    )
    
    
    (41,457
    )Total
    
    
    272,455
    
    
    
    195,556
    
    
    
    468,011
    
    
    
    153,077
    
    
    
    57,350
    
    
    
    210,427
    
    
    
    155,716
    
    
    
    (347,415
    )
    
    
    (191,699
    )Borrowings from the Central
BankPesos
    
    
    (4,044
    )
    
    
    413
    
    
    
    (3,631
    )
    
    
    (17,350
    )
    
    
    (14,507
    )
    
    
    (31,857
    )
    
    
    
    
    
    
    (1,856
    )
    
    
    (1,856
    )Dollars
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    (4,044
    )
    
    
    413
    
    
    
    (3,631
    )
    
    
    (17,350
    )
    
    
    (14,507
    )
    
    
    (31,857
    )
    
    
    
    
    
    
    (1,856
    )
    
    
    (1,856
    )Borrowings from other
financial institutionsPesos
    
    
    (9,908
    )
    
    
    1,361
    
    
    
    (8,547
    )
    
    
    (2.053
    )
    
    
    (525
    )
    
    
    (2,578
    )
    
    
    4,500
    
    
    
    2,119
    
    
    
    6,619Dollars
    
    
    5,801
    
    
    
    (229
    )
    
    
    5,572
    
    
    
    (5,548
    )
    
    
    3,199
    
    
    
    (2,349
    )
    
    
    (6,144
    )
    
    
    (9,209
    )
    
    
    (15,353
    )Total
    
    
    (4,107
    )
    
    
    1,132
    
    
    
    (2,975
    )
    
    
    (7,601
    )
    
    
    2,674
    
    
    
    (4,927
    )
    
    
    (1,644
    )
    
    
    (7,090
    )
    
    
    (8,734
    )Corporate BondsPesos
    
    
    14,443
    
    
    
    530
    
    
    
    14,973
    
    
    
    (7,640
    )
    
    
    (784
    )
    
    
    (8,424
    )
    
    
    (4,396
    )
    
    
    1
    
    
    
    (4,395
    )Dollars
    
    
    (280
    )
    
    
    (2,253
    )
    
    
    (2,533
    )
    
    
    4,636
    
    
    
    892
    
    
    
    5,528
    
    
    
    3,526
    
    
    
    (122
    )
    
    
    3,404Total
    
    
    14,163
    
    
    
    (1,723
    )
    
    
    12,440
    
    
    
    (3,004
    )
    
    
    108
    
    
    
    (2,896
    )
    
    
    (870
    )
    
    
    (121
    )
    
    
    (991
    )Other liabilitiesPesos
    
    
    2,492
    
    
    
    5,940
    
    
    
    8,432
    
    
    
    (15,126
    )
    
    
    (11,491
    )
    
    
    (26,617
    )
    
    
    
    
    
    
    (2,911
    )
    
    
    (2,911
    )Dollars
    
    
    (18,757
    )
    
    
    19,470
    
    
    
    713
    
    
    
    
    
    
    
    (3,183
    )
    
    
    (3,183
    )
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    (16,265
    )
    
    
    25,410
    
    
    
    9,145
    
    
    
    (15,126
    )
    
    
    (14,674
    )
    
    
    (29,800
    )
    
    
    
    
    
    
    (2,911
    )
    
    
    (2,911
    )Total interest-bearing
liabilitiesPesos
    
    
    268,534
    
    
    
    196,852
    
    
    
    465,386
    
    
    
    87,118
    
    
    
    51,535
    
    
    
    138,653
    
    
    
    156,817
    
    
    
    (318,508
    )
    
    
    (161,691
    )Dollars
    
    
    (2,377
    )
    
    
    21,840
    
    
    
    19,463
    
    
    
    24,052
    
    
    
    (20,483
    )
    
    
    3,569
    
    
    
    (2,592
    )
    
    
    (51,713
    )
    
    
    (54,305
    )Total
    
    
    266,157
    
    
    
    218,692
    
    
    
    484,849
    
    
    
    111,170
    
    
    
    31,052
    
    
    
    142,222
    
    
    
    154,225
    
    
    
    (370,221
    )
    
    
    (215,996
    )
  53




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##### Table of Contents



Interest-earning assets: net interest margin and spread
  Year Ended December 31,2008
    
    
    2009
    
    
    2010(in thousands of pesos, except percentages)Average interest-earning assetsPesos
    
    
    16,410,845
    
    
    
    15,136,322
    
    
    
    17,008,645Dollars
    
    
    3,174,716
    
    
    
    3,831,150
    
    
    
    4,916,675Total
    
    
    19,585,561
    
    
    
    18,967,472
    
    
    
    21,925,320Net interest income (1)Pesos
    
    
    1,535,997
    
    
    
    1,861,699
    
    
    
    2,322,283Dollars
    
    
    16,663
    
    
    
    521,237
    
    
    
    121,488Total
    
    
    1,552,660
    
    
    
    2,382,936
    
    
    
    2,443,771Net interest margin (2)Pesos
    
    
    9.36
    %
    
    
    12.30
    %
    
    
    13.65
    %Dollars
    
    
    0.52
    %
    
    
    13.61
    %
    
    
    2.47
    %Weighted average rate
    
    
    7.93
    %
    
    
    12.56
    %
    
    
    11.15
    %Yield spread nominal basis (3)Pesos
    
    
    5.97
    %
    
    
    9.18
    %
    
    
    11.39
    %Dollars
    
    
    0.90
    %
    
    
    14.45
    %
    
    
    2.30
    %Weighted average rate
    
    
    5.51
    %
    
    
    10.96
    %
    
    
    9.62
    %
 (1)
    
    Defined as interest earned less interest paid. Trading results from our portfolio of government
and private securities and from foreign exchange transactions are included in interest.(2)
    
    Net interest income (including income from government and private securities and from foreign
exchange transactions) divided by 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 31,2008
    
    
    2009
    
    
    2010(in thousands of pesos)Government SecuritiesIn Pesos:Holdings in Special Investment AccountsFederal Government bonds at 2%  Maturity 2014
    
    
    3,582
    
    
    
    222,169
    
    
    
    Federal Government bonds at Badlar + 2.75%  Maturity 2014
    
    
    
    
    
    
    191,384
    
    
    
    Secured bonds Decree No. 1,579/02 at 2%  Maturity 2018
    
    
    23,769
    
    
    
    178,979
    
    
    
    Discount bonds at 5.83%  Maturity 2033
    
    
    22,201
    
    
    
    18,207
    
    
    
    Consolidation bonds at 2%  Sixth series  Maturity 2024
    
    
    4,122
    
    
    
    5,350
    
    
    
    Consolidation bonds of social security payables at 2%  Maturity 2010 and 2014
    
    
    83,847
    
    
    
    
    
    
    
    Subtotal Holdings in Special Investment Accounts
    
    
    137,521
    
    
    
    616,089
    
    
    
    Holdings for Trading or Financial IntermediationFederal Government bonds at Badlar +2.75% Maturity 2014
    
    
    
    
    
    
    1,464
    
    
    
    200,925Secured bonds Decree. 1,579/02 at 2% Maturity 2018
    
    
    652
    
    
    
    1,433
    
    
    
    40,988Consolidation bonds of social security payables at 2%  Maturity: 2014
    
    
    1,324
    
    
    
    7,525
    
    
    
    7,029Discount bonds at 5.83%  Maturity 2033
    
    
    5,697
    
    
    
    9,752
    
    
    
    6,956Federal
Government bonds at 2%  Maturity 2014
    
    
    
    
    
    
    6,579
    
    
    
    3,674Federal Government bonds at 10.50%  Maturity 2012
    
    
    
    
    
    
    189
    
    
    
    1,059Federal Government bonds at Badlar + 3%  Maturity 2015
    
    
    
    
    
    
    1,064
    
    
    
    901Consolidation bonds at 2%   Sixt Series  Maturity 2024
    
    
    12
    
    
    
    382
    
    
    
    645Par bonds at variable rate  Maturity 2038
    
    
    181
    
    
    
    261
    
    
    
    519
  54




---



##### Table of Contents



As of December 31,2008
    
    
    2009
    
    
    2010(in thousands of pesos)GDP  Related securities  Maturity 2035
    
    
    96
    
    
    
    325
    
    
    
    54Others
    
    
    10,827
    
    
    
    943
    
    
    
    279Subtotal Holdings for Trading or Intermediation
    
    
    18,789
    
    
    
    29,917
    
    
    
    263,029Unlisted Government SecuritiesProvince of
Buenos Aires treasury bills at 168 days  Maturity: 2011
    
    
    
    
    
    
    
    
    
    
    50,084Province of Buenos Aires treasury bills at 84 days  Maturity 2011
    
    
    
    
    
    
    
    
    
    
    49,575Federal Government bonds at Badlar + 3.50% Maturity 2013
    
    
    51,864
    
    
    
    44,541
    
    
    
    46,350Federal Government bonds at variable rate Maturity 2013
    
    
    10,385
    
    
    
    9,738
    
    
    
    7,523Province of
Tucuman bonds at 2%   Maturity: 2018
    
    
    2,290
    
    
    
    1,984
    
    
    
    1,565Others
    
    
    
    
    
    
    206
    
    
    
    3Subtotal Unlisted Government Securities
    
    
    64,539
    
    
    
    56,469
    
    
    
    155,100Instruments Issued by Central BankListed Central Bank bills and notes (Lebacs/Nobacs)
    
    
    772,496
    
    
    
    264,485
    
    
    
    681,949Unlisted Central Bank bills and notes (Lebacs/Nobacs)
    
    
    2,640,452
    
    
    
    4,371,284
    
    
    
    3,167,344Subtotal Instruments Issued by Central Bank
    
    
    3,412,948
    
    
    
    4,635,769
    
    
    
    3,849,293Securities under repurchase agreementUnlisted Central Bank bills and notes (Lebacs/Nobacs)
    
    
    425,963
    
    
    
    14,652
    
    
    
    148,959Consolidation bonds at 2%  Sixth series  Maturity 2024
    
    
    
    
    
    
    
    
    
    
    18,518Listed Central Bank bills and notes (Lebacs/Nobacs)
    
    
    
    
    
    
    
    
    
    
    7,514Discount bonds denominated at 5.83%  Maturity 2033
    
    
    203,580
    
    
    
    
    
    
    
    4,797Federal Government bonds at Badlar + 2.75%  Maturity 2014
    
    
    
    
    
    
    
    
    
    
    990GDP  Related Securities  Maturity 2035
    
    
    
    
    
    
    
    
    
    
    149Subtotal Securities under repurchase agreement
    
    
    629,543
    
    
    
    14,652
    
    
    
    180,927Total Government Securities in pesos
    
    
    4,263,340
    
    
    
    5,352,896
    
    
    
    4,448,349In Foreign Currency:Holdings in Special Investment AccountsFederal
Government bonds at 7%  Maturity 2015
    
    
    49,590
    
    
    
    38,881
    
    
    
    Federal Government bonds at Libor  Maturity 2012
    
    
    235,546
    
    
    
    1,784
    
    
    
    Federal Government bonds at Libor Maturity 2013
    
    
    564
    
    
    
    562
    
    
    
    Par bonds at
variable rate  Maturity 2038 (governed by Argentina legislation)
    
    
    1,450
    
    
    
    1,594
    
    
    
    Par bonds at variable rate  Maturity 2038 (Governed by New York State
legislation)
    
    
    382
    
    
    
    461
    
    
    
    Federal
Government bonds at 7%  Maturity 2017
    
    
    23,252
    
    
    
    
    
    
    
    Subtotal Holdings in Special Investment Accounts
    
    
    310,784
    
    
    
    43,282
    
    
    
    Holding for Trading or Financial IntermediationTreasury Bills  Maturity: 2011
    
    
    
    
    
    
    
    
    
    
    198,790Federal Government bonds al Libor  Maturity 2012
    
    
    96,415
    
    
    
    52,874
    
    
    
    42,466Federal
Government bonds at 7%  Maturity 2015
    
    
    9,627
    
    
    
    1,544
    
    
    
    1,640Federal government bonds at Libor  Maturity 2013
    
    
    2,304
    
    
    
    345
    
    
    
    1,113Federal Government bonds at 7%  Maturity 2017
    
    
    1,633
    
    
    
    
    
    
    
    1,026Treasury Bills  Maturity 2010
    
    
    
    
    
    
    379,666
    
    
    
    Others
    
    
    12,119
    
    
    
    505
    
    
    
    64Subtotal Holding for Trading or Intermediation
    
    
    122,098
    
    
    
    434,934
    
    
    
    245,099Unlisted Government SecuritiesProvince of Córdoba Debt Securities at 12% Maturity 2017
    
    
    
    
    
    
    19,160
    
    
    
    17,498Province of Tucuman bonds at Libor  Maturity 2015
    
    
    5,419
    
    
    
    3,820
    
    
    
    2,455Subtotal Unlisted Government Securities
    
    
    5,419
    
    
    
    22,980
    
    
    
    19,953Securities under repurchase agreementFederal Government bonds at 7%  Maturity 2013
    
    
    
    
    
    
    
    
    
    
    2,299,088Federal Government bonds at 7%  Maturity 2017
    
    
    
    
    
    
    1,046,220
    
    
    
    Subtotal Securities under repurchase agreement
    
    
    
    
    
    
    1,046,220
    
    
    
    2,299,088Total Government Securities in foreign currency
    
    
    438,301
    
    
    
    1,547,416
    
    
    
    2,564,140Total Government Securities
    
    
    4,701,641
    
    
    
    6,900,312
    
    
    
    7,012,489Investments in Listed Private SecuritiesIn Pesos:Mutual Funds
    
    
    5,544
    
    
    
    31,469
    
    
    
    19,886Shares
    
    
    378
    
    
    
    
    
    
    
    Others
    
    
    1
    
    
    
    1
    
    
    
    
  55




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##### Table of Contents



As of December 31,2008
    
    
    2009
    
    
    2010(in thousands of pesos)In Foreign Currency:Corporate Bonds
    
    
    63,629
    
    
    
    43,047
    
    
    
    Mutual Funds
    
    
    8,133
    
    
    
    6,359
    
    
    
    9,553Shares
    
    
    
    
    
    
    
    
    
    
    17,588Subtotal Investments in Listed Private Securities
    
    
    77,685
    
    
    
    80,876
    
    
    
    47,027Investments in Unlisted Private SecuritiesIn Pesos:Certificates of Participation in Financial Trusts (1)
    
    
    304,660
    
    
    
    343,070
    
    
    
    247,341Debt Securities in Financial Trusts
    
    
    185,381
    
    
    
    123,862
    
    
    
    148,226Corporate Bonds (2) (3)
    
    
    22,390
    
    
    
    9,099
    
    
    
    6,194In Foreign Currency:Certificates of Participation in Financial Trusts (1)
    
    
    33,149
    
    
    
    47,094
    
    
    
    104,342Debt Securities in Financial Trust
    
    
    41,766
    
    
    
    82,925
    
    
    
    112,233Corporate Bonds (2) (3)
    
    
    60,104
    
    
    
    71,647
    
    
    
    273,112Subtotal Investments in Unlisted Private Securities
    
    
    647,450
    
    
    
    677,697
    
    
    
    891,448Total Government and Private Securities
    
    
    5,426,776
    
    
    
    7,658,885
    
    
    
    7,950,964
 (1)
    
    The Bank booked allowances for impairment in value amounting to Ps.231,184 thousand,
Ps.224,193 thousand and Ps.223,893 thousand as of December 31, 2010, 2009 and 2008,
respectively.(2)
    
    The Bank booked allowances for impairment in value amounting to Ps.3,003 thousand,
Ps.1,017 thousand and Ps.4,637 thousand as of December 31, 2010, 2009 and 2008,
respectively.(3)
    
    Includes Repurchased Corporate Bonds for Ps. 9,051 thousand and US $20,054 thousand as
of December 31, 2008.
 Remaining maturity of government and private securities
  Maturing1After
    
    
    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:Holdings for Trading or Financial IntermediationFederal Government bonds at Badlar Private+2.75%  Maturity 2014
    
    
    
    
    
    
    200,925
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    200,925Secured Bonds Decree 1,579/02 at 2%  Maturity 2018
    
    
    4,216
    
    
    
    21,759
    
    
    
    15,013
    
    
    
    
    
    
    
    
    
    
    
    40,988Consolidation bonds at 2%. Sixth Series  Maturity 2024
    
    
    
    
    
    
    112
    
    
    
    322
    
    
    
    211
    
    
    
    
    
    
    
    645Discount bonds at 5.83%  Maturity 2033
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,956
    
    
    
    
    
    
    
    6,956Consolidation bonds of social security payables at 2%  Maturity 2014
    
    
    2,054
    
    
    
    4,975
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,029Federal Government bonds at 2%  Maturity 2014
    
    
    919
    
    
    
    2,755
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,674Federal Government bonds at 10.50%  Maturity 2012
    
    
    
    
    
    
    1,059
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,059Federal Government bonds at Badlar +3%  Maturity 2015
    
    
    
    
    
    
    901
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    901Par bonds at variable rate  Maturity 2038
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    519
    
    
    
    
    
    
    
    519GDP 
Related Securities  Maturity 2035
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    54
    
    
    
    
    
    
    
    54Others
    
    
    37
    
    
    
    145
    
    
    
    
    
    
    
    97
    
    
    
    
    
    
    
    279Unlisted Government Securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Province of Buenos Aires treasury bills at 168 days  Maturity: 2011
    
    
    50,084
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    50,084Province of Buenos Aires treasury bills at 84 days  Maturity 2011
    
    
    49,575
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    49,575Federal Government bonds at Badlar +3.50%  Maturity 2013
    
    
    
    
    
    
    46,350
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    46,350Federal Government bonds at variable rate- Maturity 2013
    
    
    2,508
    
    
    
    5,015
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,523Province of Tucuman bonds at 2%  Maturity: 2018
    
    
    161
    
    
    
    831
    
    
    
    573
    
    
    
    
    
    
    
    
    
    
    
    1,565Others
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    3Instruments issued by Central Bank (1)Listed Central Bank  bills and notes (Lebacs/Nobacs)
    
    
    681,949
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    681,949Unlisted Central Bank bills and notes (Lebacs/Nobacs)
    
    
    3,167,344
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,167,344
  56




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##### Table of Contents



Maturing1After
    
    
    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)Securities under repurchase agreementUnlisted Central Bank bills and notes (Lebacs/Nobacs)
    
    
    148,959
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    148,959Consolidation bonds at 2%  Sixth series  Maturity 2024
    
    
    18,518
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,518Listed Central Bank bills and notes (Lebacs/Nobacs)
    
    
    7,514
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,514Discount bonds at 5.83%  Maturity 2033
    
    
    4,797
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,797Federal Government bonds at Badlar + 2.75%  Maturity 2014
    
    
    990
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    990GDP  Related Securities  Maturity 2035
    
    
    149
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    149Total Government Securities in pesos
    
    
    4,139,774
    
    
    
    284,827
    
    
    
    15,908
    
    
    
    7,837
    
    
    
    3
    
    
    
    4,448,349In Foreign Currency:Holding for Trading or Financial IntermediationTreasury bills- Maturity: 2011
    
    
    198,790
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    198,790Federal Government bonds at Libor  Maturity 2012
    
    
    21,233
    
    
    
    21,233
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    42,466Federal Government bonds at 7%  Maturity 2015
    
    
    
    
    
    
    1,640
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,640Federal Government bonds at Libor  Maturity 2013
    
    
    371
    
    
    
    742
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,113Federal Government bonds at 7%  Maturity 2017
    
    
    
    
    
    
    
    
    
    
    1,026
    
    
    
    
    
    
    
    
    
    
    
    1,026Others
    
    
    10
    
    
    
    1
    
    
    
    32
    
    
    
    21
    
    
    
    
    
    
    
    64Unlisted Government SecuritiesProvince of Córdoba Debt Securities at 12%  Maturity 2017
    
    
    2,500
    
    
    
    9,999
    
    
    
    4,999
    
    
    
    
    
    
    
    
    
    
    
    17,498Province of Tucuman at Libor- Maturity 2015
    
    
    491
    
    
    
    1,964
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,455Securities under repurchase agreementFederal Government bonds at 7%  Maturity 2013
    
    
    2,299,088
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,299,088Total Government Securities in foreign currency
    
    
    2,522,483
    
    
    
    35,579
    
    
    
    6,057
    
    
    
    21
    
    
    
    
    
    
    
    2,564,140Total Government Securities
    
    
    6,662,257
    
    
    
    320,406
    
    
    
    21,965
    
    
    
    7,858
    
    
    
    3
    
    
    
    7,012,489Private SecuritiesInvestment in Listed Private SectorIn pesos:Mutual Funds
    
    
    19,732
    
    
    
    154
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,886In Foreign CurrencyMutual Funds
    
    
    9,553
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,553Shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,588
    
    
    
    17,588Investments in Unlisted Private SecuritiesIn Pesos:Certificates of participation in financial Trusts (2)
    
    
    4,395
    
    
    
    10,008
    
    
    
    
    
    
    
    8,851
    
    
    
    224,087
    
    
    
    247,341Debt Securities in Financial Trust
    
    
    66,243
    
    
    
    80,671
    
    
    
    1,312
    
    
    
    
    
    
    
    
    
    
    
    148,226Corporate Bonds (3)
    
    
    3,996
    
    
    
    2,007
    
    
    
    
    
    
    
    
    
    
    
    191
    
    
    
    6,194In foreign currency:Certificates of participation in financial Trusts (2)
    
    
    
    
    
    
    104,342
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    104,342Debt Securities in Financial Trust
    
    
    88,596
    
    
    
    10,805
    
    
    
    12,832
    
    
    
    
    
    
    
    
    
    
    
    112,233Corporate Bonds (3)
    
    
    3,348
    
    
    
    222,531
    
    
    
    47,233
    
    
    
    
    
    
    
    
    
    
    
    273,112Total Private Securities
    
    
    195,863
    
    
    
    430,518
    
    
    
    61,377
    
    
    
    8,851
    
    
    
    241,866
    
    
    
    938,475
 (1)
    
    As of December 31, 2010, Instruments Issued by the Central Bank included Ps. 1,420,605
thousand to fall due in 30 days, Ps. 554,462 thousand to fall due in 60 days, Ps. 238,098
thousand to fall due in 90 days, Ps. 1,332,692 thousand to fall due in 120 days and Ps
303,436 thousand to fall in 180 days(2)
    
    The Bank booked
allowances for impairment in value amounting toPs. 231,184 thousand as of
December 31, 2010.(3)
    
    The Bank booked allowances for impairment in value amounting to Ps.3,003 thousand as of
December 31, 2010.
  57




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##### Table of Contents



Loan portfolio
  As of December 31,2006
    
    
    2007
    
    
    2008
    
    
    2009
    
    
    2010(in thousands of pesos)To the non-financial government sector
    
    
    774,273
    
    
    
    732,481
    
    
    
    744,507
    
    
    
    206,484
    
    
    
    336,430To the financial sector (1)
    
    
    436,930
    
    
    
    161,702
    
    
    
    80,423
    
    
    
    90,916
    
    
    
    155,701To the non-financial private sector and foreign residentsOverdrafts (2)
    
    
    1,029,679
    
    
    
    1,375,075
    
    
    
    1,556,433
    
    
    
    1,436,292
    
    
    
    2,032,986Documents (3)
    
    
    618,739
    
    
    
    1,213,669
    
    
    
    1,348,585
    
    
    
    1,412,551
    
    
    
    1,805,226Mortgages loans
    
    
    426,138
    
    
    
    619,781
    
    
    
    738,592
    
    
    
    746,762
    
    
    
    902,734Pledged loans (4)
    
    
    300,949
    
    
    
    347,989
    
    
    
    339,895
    
    
    
    262,508
    
    
    
    347,321Consumer loans (5)
    
    
    1,928,977
    
    
    
    3,929,579
    
    
    
    4,675,543
    
    
    
    4,956,690
    
    
    
    7,355,625Other loans
    
    
    1,131,315
    
    
    
    1,718,978
    
    
    
    2,071,927
    
    
    
    2,271,756
    
    
    
    3,302,223Accrued Interest, adjustments, foreign exchange and quoted price differences receivables
    
    
    101,744
    
    
    
    153,902
    
    
    
    195,026
    
    
    
    182,168
    
    
    
    216,888Less: Unposted payments
    
    
    (139
    )
    
    
    (69
    )
    
    
    (29
    )
    
    
    (29
    )
    
    
    Less: Unearned discounts
    
    
    (12,919
    )
    
    
    (23,248
    )
    
    
    (32,596
    )
    
    
    (21,246
    )
    
    
    (30,121
    )Less: Allowances
    
    
    (208,581
    )
    
    
    (220,422
    )
    
    
    (438,348
    )
    
    
    (448,045
    )
    
    
    (514,910
    )Total Loans
    
    
    6,527,105
    
    
    
    10,009,417
    
    
    
    11,279,958
    
    
    
    11,096,807
    
    
    
    15,910,103
 (1)
    
    Includes loans to financial institutions, interfinancing (granted call) and other financing to
Argentine financial institutions.(2)
    
    Includes overdraft lines of credit resulting from checking accounts.(3)
    
    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 non- financial private sector.(4)
    
    Includes the principal amounts actually lent of automobile and other collateral granted, for
which the obligator is part of the non-financial private sector.(5)
    
    Includes 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, 2010
    
    
    1 Year
    
    
    5 Years
    
    
    5 Years(in thousands of pesos, except percentages)To the non-financial government sector
    
    
    336,430
    
    
    
    42,895
    
    
    
    15,671
    
    
    
    277,864To the financial sector (1)
    
    
    155,701
    
    
    
    149,765
    
    
    
    5,936
    
    
    
    To the non-financial private sector and foreign residentsOverdrafts (2)
    
    
    2,072,052
    
    
    
    2,072,043
    
    
    
    9
    
    
    
    Documents (3)
    
    
    1,802,007
    
    
    
    1,783,554
    
    
    
    18,216
    
    
    
    237Mortgages loans
    
    
    923,867
    
    
    
    250,962
    
    
    
    490,040
    
    
    
    182,865Pledged loans (4)
    
    
    357,153
    
    
    
    166,424
    
    
    
    190,729
    
    
    
    Consumer loans (5)
    
    
    7,418,790
    
    
    
    3,418,973
    
    
    
    3,764,875
    
    
    
    234,942Other loans
    
    
    3,359,013
    
    
    
    2,734,426
    
    
    
    550,597
    
    
    
    73,990Total Loans
    
    
    16,425,013
    
    
    
    10,619,042
    
    
    
    5,036,073
    
    
    
    769,898Percentage of total loan portfolio
    
    
    100
    %
    
    
    64
    %
    
    
    31
    %
    
    
    5
    %
 (1)
    
    Includes loans to financial institutions, interfinancing (granted call) and other financing to
Argentine financial institutions.(2)
    
    Includes 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 non- financial private sector.(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)
    
    Includes credit card loans and other consumer loans. Overdrafts to individuals are included
under Overdrafts.
 Loansportfolio classification
  As of December 31,Loan Portfolio
    
    2006
    
    
    2007
    
    
    2008
    
    
    2009
    
    
    2010(in thousands of pesos, except percentages)Categories1  In normal situation/ Performing
    
    
    6,550,389
    
    
    
    97.25
    %
    
    
    9,927,876
    
    
    
    97.05
    %
    
    
    11,292,176
    
    
    
    96.36
    %
    
    
    10,963,274
    
    
    
    94.96
    %
    
    
    15,946,416
    
    
    
    97.09
    %2  Subject to special monitoring in
observation- in negotiation or with
rollover agreement/ Low risk
    
    
    50,077
    
    
    
    0.74
    %
    
    
    143,128
    
    
    
    1.40
    %
    
    
    117,023
    
    
    
    1.00
    %
    
    
    206,477
    
    
    
    1.79
    %
    
    
    132,797
    
    
    
    0.81
    %3  Troubled/Medium risk
    
    
    45,603
    
    
    
    0.68
    %
    
    
    52,059
    
    
    
    0.51
    %
    
    
    86,288
    
    
    
    0.74
    %
    
    
    130,649
    
    
    
    1.13
    %
    
    
    73,403
    
    
    
    0.45
    %4  With high risk of insolvency/ High risk
    
    
    34,503
    
    
    
    0.51
    %
    
    
    62,856
    
    
    
    0.61
    %
    
    
    172,950
    
    
    
    1.48
    %
    
    
    188,058
    
    
    
    1.63
    %
    
    
    161,072
    
    
    
    0.98
    %5  Irrecoverable
    
    
    51,086
    
    
    
    0.76
    %
    
    
    36,526
    
    
    
    0.36
    %
    
    
    48,434
    
    
    
    0.41
    %
    
    
    55,996
    
    
    
    0.49
    %
    
    
    110,914
    
    
    
    0.67
    %6  Irrecoverable according to Central
Banks Rules
    
    
    4,028
    
    
    
    0.06
    %
    
    
    7,394
    
    
    
    0.07
    %
    
    
    1,435
    
    
    
    0.01
    %
    
    
    398
    
    
    
    0.00
    %
    
    
    411
    
    
    
    0.00
    %Total Loans
    
    
    6,735,686
    
    
    
    100.00
    %
    
    
    10,229,839
    
    
    
    100.00
    %
    
    
    11,718,306
    
    
    
    100.00
    %
    
    
    11,544,852
    
    
    
    100.00
    %
    
    
    16,425,013
    
    
    
    100.00
    %
  58




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##### Table of Contents



Non-performing Loans
  As of December 31,Non-performing loans
    
    2006
    
    
    2007
    
    
    2008
    
    
    2009
    
    
    2010(in thousands of pesos)With preferred guarantees
    
    
    44,563
    
    
    
    27,657
    
    
    
    31,627
    
    
    
    42,904
    
    
    
    43,221Unsecured
    
    
    90,657
    
    
    
    131,178
    
    
    
    277,480
    
    
    
    332,197
    
    
    
    302,579Total non-performing loans
    
    
    135,220
    
    
    
    158,835
    
    
    
    309,107
    
    
    
    375,101
    
    
    
    345,800
  Analysis of the allowance for loan losses
  Year Ended December 31,2006
    
    
    2007
    
    
    2008
    
    
    2009
    
    
    2010(in thousands of pesos)Balance at the beginning of the year
    
    
    247,532
    
    
    
    208,581
    
    
    
    220,422
    
    
    
    438,348
    
    
    
    448,045Provisions for loan losses
    
    
    102,538
    (2)
    
    
    93,498
    
    
    
    314,532
    
    
    
    187,648
    
    
    
    254,010
    (3)Charge off (1)
    
    
    (141,489
    )
    
    
    (81,657
    )
    
    
    (96,606
    )
    
    
    (177,951
    )
    
    
    (187,145
    )Overdrafts
    
    
    (31,584
    )
    
    
    (13,889
    )
    
    
    (9,314
    )
    
    
    (32,519
    )
    
    
    (14,857
    )Personal loans
    
    
    (4,411
    )
    
    
    (10,929
    )
    
    
    (47,527
    )
    
    
    (99,192
    )
    
    
    (98,305
    )Credit Cards
    
    
    (2,184
    )
    
    
    (5,751
    )
    
    
    (12,134
    )
    
    
    (16,892
    )
    
    
    (35,756
    )Mortgage loans
    
    
    (25,825
    )
    
    
    (8,071
    )
    
    
    (5,087
    )
    
    
    (5,096
    )
    
    
    (4,337
    )Pledged loans
    
    
    (4,323
    )
    
    
    (674
    )
    
    
    (2,686
    )
    
    
    (1,341
    )
    
    
    (911
    )Documents
    
    
    (39,974
    )
    
    
    (6,931
    )
    
    
    (5,296
    )
    
    
    (14,171
    )
    
    
    (7,523
    )Other
    
    
    (33,188
    )
    
    
    (35,412
    )
    
    
    (14,562
    )
    
    
    (8,740
    )
    
    
    (25,456
    )Balance at the end of year
    
    
    208,581
    
    
    
    220,422
    
    
    
    438,348
    
    
    
    448,045
    
    
    
    514,910Charge-off/average loans (1)
    
    
    2.72
    %
    
    
    1.18
    %
    
    
    0.87
    %
    
    
    1.59
    %
    
    
    1.45
    %
 (1)
    
    Charge-off includes reversals.(2)
    
    Includes Ps. 13,933 thousand and Ps. 28,443 thousand for the incorporation of Banco del
Tucumán and Nuevo Banco Bisel respectively.(3)
    
    Includes Ps. 15,066 thousand for the incorporations of Banco Privado.
  Allocation of the allowances for loan losses
  As of December 31,2006
    
    
    2007
    
    
    2008
    
    
    2009
    
    
    2010(in thousands of pesos, except percentages)Overdrafts
    
    
    24,987
    
    
    
    11.98
    %
    
    
    25,510
    
    
    
    11.57
    %
    
    
    64,107
    
    
    
    14.62
    %
    
    
    37,242
    
    
    
    8.31
    %
    
    
    37,757
    
    
    
    7.33
    %Documents
    
    
    20,326
    
    
    
    9.75
    %
    
    
    23,215
    
    
    
    10.53
    %
    
    
    42,003
    
    
    
    9.58
    %
    
    
    32,825
    
    
    
    7.33
    %
    
    
    31,403
    
    
    
    6.10
    %Mortgage loans
    
    
    22,640
    
    
    
    10.86
    %
    
    
    20,210
    
    
    
    9.17
    %
    
    
    26,378
    
    
    
    6.02
    %
    
    
    24,422
    
    
    
    5.45
    %
    
    
    24,016
    
    
    
    4.66
    %Pledged loans
    
    
    8,433
    
    
    
    4.04
    %
    
    
    8,608
    
    
    
    3.91
    %
    
    
    9,512
    
    
    
    2.17
    %
    
    
    9,664
    
    
    
    2.16
    %
    
    
    10,971
    
    
    
    2.13
    %Personal loans
    
    
    40,364
    
    
    
    19.35
    %
    
    
    70,375
    
    
    
    31.93
    %
    
    
    174,398
    
    
    
    39.79
    %
    
    
    195,643
    
    
    
    43.67
    %
    
    
    215,530
    
    
    
    41.86
    %Credit cards
    
    
    12,752
    
    
    
    6.11
    %
    
    
    17,658
    
    
    
    8.01
    %
    
    
    34,281
    
    
    
    7.82
    %
    
    
    33,915
    
    
    
    7.57
    %
    
    
    53,751
    
    
    
    10.44
    %Other loans
    
    
    79,079
    
    
    
    37.91
    %
    
    
    54,846
    
    
    
    24.88
    %
    
    
    87,669
    
    
    
    20.00
    %
    
    
    114,334
    
    
    
    25.52
    %
    
    
    141,482
    
    
    
    27.48
    %TOTAL
    
    
    208,581
    
    
    
    100.00
    %
    
    
    220,422
    
    
    
    100.00
    %
    
    
    438,348
    
    
    
    100.00
    %
    
    
    448,045
    
    
    
    100.00
    %
    
    
    514,910
    
    
    
    100.00
    %
  59




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##### Table of Contents



Loans by economic activities
  As of December 31,2006
    
    
    2007
    
    
    2008
    
    
    2009
    
    
    2010(in thousands of pesos, except percentages)% of
    
    
    
    
    
    
    % of
    
    
    
    
    
    
    % of
    
    
    
    
    
    
    % of
    
    
    
    
    
    
    % ofLoan
    
    
    Loan
    
    
    Loan
    
    
    Loan
    
    
    Loan
    
    
    Loan
    
    
    Loan
    
    
    Loan
    
    
    Loan
    
    
    LoanPortfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    PortfolioRetail Loans
    
    
    1,719,736
    
    
    
    25.53
    %
    
    
    3,410,359
    
    
    
    33.34
    %
    
    
    4,023,725
    
    
    
    34.34
    %
    
    
    4,403,933
    
    
    
    38.15
    %
    
    
    6,512,629
    
    
    
    39.65
    %Agricultural livestock- Forestry- Fishing- Mining- Hunting
    
    
    650,405
    
    
    
    9.66
    %
    
    
    1,050,102
    
    
    
    10.27
    %
    
    
    1,538,027
    
    
    
    13.12
    %
    
    
    1,910,164
    
    
    
    16.55
    %
    
    
    2,286,297
    
    
    
    13.92
    %Construction
    
    
    320,484
    
    
    
    4.76
    %
    
    
    411,725
    
    
    
    4.02
    %
    
    
    563,526
    
    
    
    4.81
    %
    
    
    1,112,702
    
    
    
    9.64
    %
    
    
    1,009,744
    
    
    
    6.15
    %Other services
    
    
    474,325
    
    
    
    7.04
    %
    
    
    970,585
    
    
    
    9.49
    %
    
    
    852,658
    
    
    
    7.28
    %
    
    
    858,936
    
    
    
    7.44
    %
    
    
    1,281,916
    
    
    
    7.80
    %Retail and consumer products
    
    
    550,359
    
    
    
    8.17
    %
    
    
    703,063
    
    
    
    6.87
    %
    
    
    831,741
    
    
    
    7.10
    %
    
    
    747,897
    
    
    
    6.48
    %
    
    
    1,140,019
    
    
    
    6.94
    %Foodstuff and beverages
    
    
    537,905
    
    
    
    7.99
    %
    
    
    700,917
    
    
    
    6.85
    %
    
    
    521,849
    
    
    
    4.45
    %
    
    
    637,814
    
    
    
    5.52
    %
    
    
    917,874
    
    
    
    5.59
    %Financial Services
    
    
    593,423
    
    
    
    8.81
    %
    
    
    408,002
    
    
    
    3.99
    %
    
    
    289,450
    
    
    
    2.47
    %
    
    
    290,331
    
    
    
    2.51
    %
    
    
    387,074
    
    
    
    2.36
    %Governmental services
    
    
    844,814
    
    
    
    12.54
    %
    
    
    861,852
    
    
    
    8.42
    %
    
    
    886,749
    
    
    
    7.57
    %
    
    
    258,784
    
    
    
    2.24
    %
    
    
    418,026
    
    
    
    2.55
    %Real estate, business and leases
    
    
    39,087
    
    
    
    0.58
    %
    
    
    59,512
    
    
    
    0.58
    %
    
    
    267,604
    
    
    
    2.28
    %
    
    
    236,555
    
    
    
    2.05
    %
    
    
    357,865
    
    
    
    2.18
    %Transportation, storage and communications
    
    
    195,094
    
    
    
    2.90
    %
    
    
    181,646
    
    
    
    1.78
    %
    
    
    263,999
    
    
    
    2.25
    %
    
    
    190,796
    
    
    
    1.65
    %
    
    
    488,356
    
    
    
    2.97
    %Manufacturing and wholesales
    
    
    147,127
    
    
    
    2.18
    %
    
    
    166,169
    
    
    
    1.62
    %
    
    
    283,555
    
    
    
    2.42
    %
    
    
    140,620
    
    
    
    1.22
    %
    
    
    302,927
    
    
    
    1.84
    %Chemicals
    
    
    300,429
    
    
    
    4.46
    %
    
    
    340,450
    
    
    
    3.33
    %
    
    
    608,157
    
    
    
    5.19
    %
    
    
    129,145
    
    
    
    1.12
    %
    
    
    455,313
    
    
    
    2.77
    %Electricity, oil, water
    
    
    31,061
    
    
    
    0.46
    %
    
    
    74,256
    
    
    
    0.73
    %
    
    
    170,950
    
    
    
    1.46
    %
    
    
    75,095
    
    
    
    0.65
    %
    
    
    92,475
    
    
    
    0.56
    %Hotels and restaurants
    
    
    43,196
    
    
    
    0.64
    %
    
    
    39,365
    
    
    
    0.38
    %
    
    
    32,325
    
    
    
    0.28
    %
    
    
    29,949
    
    
    
    0.26
    %
    
    
    27,866
    
    
    
    0.17
    %Other
    
    
    288,241
    
    
    
    4.28
    %
    
    
    851,836
    
    
    
    8.33
    %
    
    
    583,991
    
    
    
    4.98
    %
    
    
    522,131
    
    
    
    4.52
    %
    
    
    746,632
    
    
    
    4.55
    %Total Loans
    
    
    6,735,686
    
    
    
    100.00
    %
    
    
    10,229,839
    
    
    
    100.00
    %
    
    
    11,718,306
    
    
    
    100.00
    %
    
    
    11,544,852
    
    
    
    100.00
    %
    
    
    16,425,013
    
    
    
    100.00
    %
 Deposits
  Year ended December 31,2008
    
    
    2009
    
    
    2010(in thousands of pesos)Deposits in Domestic Bank OfficesNon-interest-bearing Demand Deposits (1)AveragePesos
    
    
    3,665,382
    
    
    
    3,929,402
    
    
    
    5,606,395Dollars
    
    
    8,044
    
    
    
    13,179
    
    
    
    205,684Total
    
    
    3,673,426
    
    
    
    3,942,581
    
    
    
    5,812,079Saving AccountsAveragePesos
    
    
    2,822,961
    
    
    
    2,842,075
    
    
    
    2,969,340Dollars
    
    
    361,324
    
    
    
    542,740
    
    
    
    520,772Total
    
    
    3,184,285
    
    
    
    3,384,815
    
    
    
    3,490,112Average nominal ratePesos
    
    
    1.05
    %
    
    
    1.11
    %
    
    
    0.76
    %Dollars
    
    
    0.46
    %
    
    
    0.34
    %
    
    
    0.17
    %Total
    
    
    0.98
    %
    
    
    0.99
    %
    
    
    0.67
    %Time DepositsAveragePesos
    
    
    6,556,086
    
    
    
    7,446,052
    
    
    
    8,944,481Dollars
    
    
    1,490,885
    
    
    
    2,337,132
    
    
    
    2,343,123Total
    
    
    8,046,971
    
    
    
    9,783,184
    
    
    
    11,287,604
  60




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##### Table of Contents



Year ended December 31,2008
    
    
    2009
    
    
    2010(in thousands of pesos)Average nominal ratePesos
    
    
    13.33
    %
    
    
    14.50
    %
    
    
    10.39
    %Dollars
    
    
    3.78
    %
    
    
    2.75
    %
    
    
    1.00
    %Total
    
    
    11.56
    %
    
    
    11.70
    %
    
    
    8.44
    %Deposits in Foreign Bank OfficesNon-interest-bearing Demand DepositsAveragePesos
    
    
    513
    
    
    
    1,063
    
    
    
    35Dollars
    
    
    15
    
    
    
    3,913
    
    
    
    7,756Total
    
    
    528
    
    
    
    4,976
    
    
    
    7,791Saving AccountsAverageDollars
    
    
    90,568
    
    
    
    320,853
    
    
    
    387,714Total
    
    
    90,568
    
    
    
    320,853
    
    
    
    387,714Average nominal rateDollars
    
    
    1.20
    %
    
    
    0.05
    %
    
    
    0.06
    %Total
    
    
    1.20
    %
    
    
    0.05
    %
    
    
    0.06
    %Time DepositsAverageDollars
    
    
    226,626
    
    
    
    311,843
    
    
    
    302,972Total
    
    
    226,626
    
    
    
    311,843
    
    
    
    302,972Average nominal rateDollars
    
    
    3.35
    %
    
    
    1.28
    %
    
    
    1.09
    %Total
    
    
    3.35
    %
    
    
    1.28
    %
    
    
    1.09
    %
 (1)
    
    Non-interest-bearing demand deposits consist of checking accounts.
 Maturity of deposits at December 31, 2010
  MaturingAfter 3
    
    
    After 6Within 3
    
    
    but Within
    
    
    but Within
    
    
    After 12Total
    
    
    Months
    
    
    6 Months
    
    
    12 Months
    
    
    Months(in thousands of pesos)Checking accounts
    
    
    5,439,564
    
    
    
    5,439,564
    
    
    
    
    
    
    
    
    
    
    
    Savings accounts
    
    
    4,757,144
    
    
    
    4,757,144
    
    
    
    
    
    
    
    
    
    
    
    Time deposits
    
    
    11,732,876
    
    
    
    9,843,063
    
    
    
    837,657
    
    
    
    368,532
    
    
    
    683,624Investment accounts
    
    
    900,780
    
    
    
    779,979
    
    
    
    57,146
    
    
    
    63,610
    
    
    
    45Other
    
    
    577,029
    
    
    
    572,475
    
    
    
    94
    
    
    
    4,460
    
    
    
    Total Deposits
    
    
    23,407,393
    
    
    
    21,392,225
    
    
    
    894,897
    
    
    
    436,602
    
    
    
    683,669
 Maturity of deposits at December 31, 2010 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
    
    
    8,579,301
    
    
    
    6,899,110
    
    
    
    758,256
    
    
    
    419,114
    
    
    
    682,821Foreign bank offices
    
    
    276,745
    
    
    
    255,537
    
    
    
    21,208
    
    
    
    
    
    
    
    Total
    
    
    9,036,046
    
    
    
    7,154,647
    
    
    
    779,464
    
    
    
    419,114
    
    
    
    682,821
  61




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##### Table of Contents



Return on equity and assets
  Year Ended December 31,2008
    
    
    2009
    
    
    2010(in thousands of pesos, except percentages)Net income
    
    
    660,050
    
    
    
    751,930
    
    
    
    1,010,430Average total assets
    
    
    21,865,952
    
    
    
    23,964,067
    
    
    
    28,078,290Average shareholders equity
    
    
    2,778,572
    
    
    
    3,055,736
    
    
    
    3,733,181Shareholders equity at the end of the fiscal year
    
    
    2,821,911
    
    
    
    3,358,801
    
    
    
    4,152,842Net income as a percentage of:Average total assets
    
    
    3.02
    %
    
    
    3.14
    %
    
    
    3.60
    %Average shareholders equity
    
    
    23.76
    %
    
    
    24.61
    %
    
    
    27.07
    %Declared cash dividends (2)
    
    
    149,870
    
    
    
    208,070
    
    
    
    505,312Dividend payout ratio (1)
    
    
    22.71
    %
    
    
    27.67
    %
    
    
    50.01
    %Average shareholders equity as a percentage of Average Total Assets
    
    
    12.71
    %
    
    
    12.75
    %
    
    
    13.30
    %
 (1)
    
    Declared cash dividends stated as percentage of net income.(2)
    
    For the fiscal year ended December 31, 2008, the dividends paid in cash were Ps.148,335
thousand, based on the number of shares outstanding on such payment dates.
 Short-term borrowings
  Year Ended December 31,2008
    
    
    2009
    
    
    2010Annualized
    
    
    
    
    
    
    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
    
    
    78,939
    
    
    
    1.95
    %
    
    
    1,363
    
    
    
    0.00
    %
    
    
    1,452
    
    
    
    0.01
    %Average during year (1)
    
    
    76,023
    
    
    
    1.96
    %
    
    
    1,590
    
    
    
    0.00
    %
    
    
    1,328
    
    
    
    0.00
    %Maximum month-end balance
    
    
    78,939
    
    
    
    
    
    
    
    2,168
    
    
    
    
    
    
    
    1,452Banks and international organizations:Total amount outstanding at the end
of the reported period
    
    
    59,737
    
    
    
    4.92
    %
    
    
    227,214
    
    
    
    7.78
    %
    
    
    45,697
    
    
    
    1.89
    %Average during year (1)
    
    
    55,054
    
    
    
    4.38
    %
    
    
    121,662
    
    
    
    8.06
    %
    
    
    40,378
    
    
    
    2.17
    %Maximum month-end balance
    
    
    86,762
    
    
    
    
    
    
    
    227,214
    
    
    
    
    
    
    
    53,640Corporate BondsTotal amount outstanding at the end
of the reported period
    
    
    16,518
    
    
    
    9.46
    %
    
    
    15,719
    
    
    
    9.24
    %
    
    
    16,393
    
    
    
    9.22
    %Average during year (1)
    
    
    16,612
    
    
    
    9.45
    %
    
    
    14,797
    
    
    
    9.30
    %
    
    
    14,384
    
    
    
    9.22
    %Maximum month-end balance
    
    
    17,063
    
    
    
    
    
    
    
    15,897
    
    
    
    
    
    
    
    16,393Financing received from Argentine
financial institutions:Total amount outstanding at the end
of the reported period
    
    
    31,846
    
    
    
    10.33
    %
    
    
    149,122
    
    
    
    9.45
    %
    
    
    34,893
    
    
    
    9.14
    %Average during year (1)
    
    
    96,294
    
    
    
    5.47
    %
    
    
    64,430
    
    
    
    9.11
    %
    
    
    53,410
    
    
    
    8.67
    %Maximum month-end balance
    
    
    166,146
    
    
    
    
    
    
    
    149,122
    
    
    
    
    
    
    
    66,661OtherTotal amount outstanding at the end
of the reported period
    
    
    545,183
    
    
    
    0.02
    %
    
    
    652,330
    
    
    
    0.02
    %
    
    
    1,093,308
    
    
    
    0.01
    %Average during year (1)
    
    
    524,019
    
    
    
    0.02
    %
    
    
    620,873
    
    
    
    0.02
    %
    
    
    743,456
    
    
    
    0.02
    %Maximum month-end balance
    
    
    599,063
    
    
    
    
    
    
    
    652,330
    
    
    
    
    
    
    
    1,093,308Subordinated corporate bonds:Total amount outstanding at the end
of the reported period
    
    
    2,740
    
    
    
    4.00
    %
    
    
    2,968
    
    
    
    4.00
    %
    
    
    2,100
    
    
    
    4.00
    %Average during year (1)
    
    
    21,056
    
    
    
    7.02
    %
    
    
    9,762
    
    
    
    4.00
    %
    
    
    9,413
    
    
    
    4.00
    %Maximum month-end balance
    
    
    36,987
    
    
    
    
    
    
    
    16,854
    
    
    
    
    
    
    
    16,711Total Short Term
    
    
    734,963
    
    
    
    
    
    
    
    1,048,716
    
    
    
    
    
    
    
    1,193,843
 (1)
    
    Average balances are calculated from quarterly-end balances.
 Interest rate sensitivity
    62




---



##### Table of Contents



Remaining Maturity at December 31, 2010Without0-1 Year
    
    
    1-5 Years
    
    
    5-10 Years
    
    
    Over 10 years
    
    
    due date
    
    
    TotalInterest-earning assets:Interest-bearing deposits in other banks
    
    
    269,155
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    269,155Government Securities (2)
    
    
    6,662,257
    
    
    
    320,406
    
    
    
    21,965
    
    
    
    7,858
    
    
    
    3
    
    
    
    7,012,489Receivables from financial leases
    
    
    110,305
    
    
    
    136,662
    
    
    
    6,453
    
    
    
    
    
    
    
    
    
    
    
    253,420Loans to non-financial government sector (1)
    
    
    42,895
    
    
    
    15,671
    
    
    
    254,532
    
    
    
    23,332
    
    
    
    
    
    
    
    336,430Loans to the private and financial sector (1)
    
    
    10,576,147
    
    
    
    5,020,402
    
    
    
    403,010
    
    
    
    89,024
    
    
    
    
    
    
    
    16,088,583Other assets
    
    
    166,578
    
    
    
    430,364
    
    
    
    61,377
    
    
    
    8,851
    
    
    
    224,278
    
    
    
    891,448Total Interest-Earning Assets
    
    
    17,827,337
    
    
    
    5,923,505
    
    
    
    747,337
    
    
    
    129,065
    
    
    
    224,281
    
    
    
    24,851,525Interest-bearing liabilities:Checking
    
    
    208,782
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    208,782Savings accounts
    
    
    4,757,144
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,757,144Time deposits
    
    
    11,049,252
    
    
    
    683,624
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,732,876Investment accounts
    
    
    900,735
    
    
    
    45
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    900,780Corporate Bonds
    
    
    16,393
    
    
    
    197,066
    
    
    
    423,005
    
    
    
    
    
    
    
    
    
    
    
    636,464Subordinated corporate bonds
    
    
    2,100
    
    
    
    
    
    
    
    
    
    
    
    596,370
    
    
    
    
    
    
    
    598,470Liabilities with Central Bank
    
    
    109
    
    
    
    
    
    
    
    215
    
    
    
    210
    
    
    
    
    
    
    
    534Liabilities with local financial institutions
    
    
    34,893
    
    
    
    24,108
    
    
    
    16,636
    
    
    
    
    
    
    
    
    
    
    
    75,637Liabilities with bank and international Organizations
    
    
    45,697
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    45,697Other liabilities
    
    
    95,198
    
    
    
    3,084
    
    
    
    
    
    
    
    78,714
    
    
    
    
    
    
    
    176,996Total Interest-Bearing Liabilities
    
    
    17,110,303
    
    
    
    907,927
    
    
    
    439,856
    
    
    
    675,294
    
    
    
    
    
    
    
    19,133,380Asset (Liability) Gap
    
    
    717,034
    
    
    
    5,015,578
    
    
    
    307,481
    
    
    
    (546,229
    )
    
    
    224,281
    
    
    
    5,718,145Cumulative Asset/Liability Gap
    
    
    717,034
    
    
    
    5,732,612
    
    
    
    6,040,093
    
    
    
    5,493,864
    
    
    
    5,718,145Cumulative sensitivity gap as a percentage of total
interest-earning assets
    
    
    2.89
    %
    
    
    23.07
    %
    
    
    24.30
    %
    
    
    22.11
    %
    
    
    23.01
    %
 Remaining Maturity at December 31, 20100-1 Year
    
    
    1-5 Years
    
    
    5-10 Years
    
    
    Over 10 years
    
    
    Without due date
    
    
    TotalInterest-earning assets in Pesos:Government securities (2)
    
    
    4,139,774
    
    
    
    284,827
    
    
    
    15,908
    
    
    
    7,837
    
    
    
    3
    
    
    
    4,448,349Receivables from financial leases
    
    
    90,674
    
    
    
    102,760
    
    
    
    28
    
    
    
    
    
    
    
    
    
    
    
    193,462Loans to non-financial government sector (1)
    
    
    42,895
    
    
    
    15,671
    
    
    
    254,532
    
    
    
    23,332
    
    
    
    
    
    
    
    336,430Loans to the private and financial sector (1)
    
    
    8,391,301
    
    
    
    4,874,572
    
    
    
    373,035
    
    
    
    89,024
    
    
    
    
    
    
    
    13,727,932Other assets
    
    
    74,634
    
    
    
    92,686
    
    
    
    1,312
    
    
    
    8,851
    
    
    
    224,278
    
    
    
    401,761Total Interest-Earning Assets in Pesos
    
    
    12,739,278
    
    
    
    5,370,516
    
    
    
    644,815
    
    
    
    129,044
    
    
    
    224,281
    
    
    
    19,107,934Interest-bearing liabilities in Pesos:Saving accounts
    
    
    3,906,588
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,906,588Time deposits
    
    
    8,406,686
    
    
    
    683,414
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,090,100Investment accounts
    
    
    888,416
    
    
    
    45
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    888,461Corporate bonds
    
    
    1,412
    
    
    
    197,066
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    198,478Subordinated corporate bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Liabilities with Central Bank
    
    
    109
    
    
    
    
    
    
    
    215
    
    
    
    210
    
    
    
    
    
    
    
    534Liabilities with local financial institutions
    
    
    34,825
    
    
    
    24,108
    
    
    
    16,636
    
    
    
    
    
    
    
    
    
    
    
    75,569Other liabilities
    
    
    95,198
    
    
    
    3,084
    
    
    
    
    
    
    
    78,714
    
    
    
    
    
    
    
    176,996Total Interest-Bearing Liabilities in Pesos
    
    
    13,333,234
    
    
    
    907,717
    
    
    
    16,851
    
    
    
    78,924
    
    
    
    
    
    
    
    14,336,726Asset(Liability) Gap
    
    
    (593,956
    )
    
    
    4,462,799
    
    
    
    627,964
    
    
    
    50,120
    
    
    
    224,281
    
    
    
    4,771,208Cumulative Asset/Liability Gap
    
    
    (593,956
    )
    
    
    3,868,843
    
    
    
    4,496,807
    
    
    
    4,546,927
    
    
    
    4,771,208Cumulative sensitivity gap as a percentage of
total interest-earning assets
    
    
    (3.11
    )%
    
    
    20.25
    %
    
    
    23.53
    %
    
    
    23.80
    %
    
    
    24.97
    %
 Remaining Maturity at December 31, 2010Without due0-1 Year
    
    
    1-5 Years
    
    
    5-10 Years
    
    
    Over 10 years
    
    
    date
    
    
    TotalInterest-earning assets in foreign
currencyInterest-bearing deposits in other banks
    
    
    269,155
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    269,155Government securities (2)
    
    
    2,522,483
    
    
    
    35,579
    
    
    
    6,057
    
    
    
    21
    
    
    
    
    
    
    
    2,564,140Receivables from financial leases
    
    
    19,631
    
    
    
    33,902
    
    
    
    6,425
    
    
    
    
    
    
    
    
    
    
    
    59,958Loans to the private and financial
sector (1)
    
    
    2,184,846
    
    
    
    145,830
    
    
    
    29,975
    
    
    
    
    
    
    
    
    
    
    
    2,360,651Other assets
    
    
    91,944
    
    
    
    337,678
    
    
    
    60,065
    
    
    
    
    
    
    
    
    
    
    
    489,687Total Interest-Earning Assets
    
    
    5,088,059
    
    
    
    552,989
    
    
    
    102,522
    
    
    
    21
    
    
    
    
    
    
    
    5,743,591Interest-bearing liabilities in foreign
currency:Checking
    
    
    208,782
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    208,782Saving accounts
    
    
    850,556
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    850,556Time deposits
    
    
    2,642,566
    
    
    
    210
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,642,776Investment accounts
    
    
    12,319
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,319Corporate bonds
    
    
    14,981
    
    
    
    
    
    
    
    423,005
    
    
    
    
    
    
    
    
    
    
    
    437,986Subordinated corporate bonds
    
    
    2,100
    
    
    
    
    
    
    
    
    
    
    
    596,370
    
    
    
    
    
    
    
    598,470Liabilities with local financial
    
    
    68
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    68Liabilities with banks and international organizations
    
    
    45,697
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    45,697Total Interest-Bearing Liabilities
    
    
    3,777,069
    
    
    
    210
    
    
    
    423,005
    
    
    
    596,370
    
    
    
    
    
    
    
    4,796,654Asset (Liability) Gap
    
    
    1,310,990
    
    
    
    552,779
    
    
    
    (320,483
    )
    
    
    (596,349
    )
    
    
    
    
    
    
    946,937Cumulative Asset/Liability Gap
    
    
    1,310,990
    
    
    
    1,863,769
    
    
    
    1,543,286
    
    
    
    946,937
    
    
    
    946,937Cumulative sensitivity gap as a
percentage of total interest-earning
assets
    
    
    22.83
    %
    
    
    32.45
    %
    
    
    26.87
    %
    
    
    16.49
    %
    
    
    16.49
    %
 (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.
  63




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##### Table of Contents



Item 4A.
    
    Unresolved Staff Comments
  
 Item 5.
    
    Operating and Financial Review and Prospects
   A. Operating results
 FINANCIAL PRESENTATION
   COMPARABILITY
    MACROECONOMIC CONTEXT
     64




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##### Table of Contents



RESULTS OF OPERATIONS
           65




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##### Table of Contents



YEAR ENDED DECEMBER 31, 2010 COMPARED TO YEAR ENDED DECEMBER 31, 2009 AND YEAR ENDED DECEMBER 31,
2009 COMPARED TO YEAR ENDED DECEMBER 31, 2008
 Net income
  Year Ended December 31,2008 (1)
    
    
    2009 (1)
    
    
    2010 (2)(in thousands of pesos)Financial income
    
    
    3,029,860
    
    
    
    3,860,452
    
    
    
    3,728,438Financial expenses
    
    
    (1,342,062
    )
    
    
    (1,511,607
    )
    
    
    (1,330,170
    )Gross intermediation margin
    
    
    1,687,798
    
    
    
    2,348,845
    
    
    
    2,398,268Provision for loan losses
    
    
    (297,606
    )
    
    
    (197,512
    )
    
    
    (215,040
    )Service charge income
    
    
    891,700
    
    
    
    1,050,275
    
    
    
    1,324,541Service charge expenses
    
    
    (172,401
    )
    
    
    (226,599
    )
    
    
    (285,365
    )Administrative expenses
    
    
    (1,270,002
    )
    
    
    (1,522,420
    )
    
    
    (1,917,314
    )Net other income (expense)
    
    
    85,122
    
    
    
    (36,317
    )
    
    
    77,983Minority interest
    
    
    (3,354
    )
    
    
    (5,092
    )
    
    
    (6,868
    )Net income before income tax
    
    
    921,257
    
    
    
    1,411,180
    
    
    
    1,376,205Income tax
    
    
    (261,207
    )
    
    
    (659,250
    )
    
    
    (365,775
    )Net income
    
    
    660,050
    
    
    
    751,930
    
    
    
    1,010,430
 (1)
    
    See note 4.2 to our audited consolidated financial statements for the year ended December 31,
2010.(2)
    
    The results of operations of Banco Privado are consolidated with Banco Macro from September
20, 2010.
  Financial income
  Year Ended December 31,2008 (1)
    
    
    2009 (1)
    
    
    2010 (2)(in thousands of pesos)Interest on cash and due from banks
    
    
    7,010
    
    
    
    363
    
    
    
    275Interest on loans to the financial sector
    
    
    15,584
    
    
    
    7,491
    
    
    
    13,668Interest on overdrafts
    
    
    357,215
    
    
    
    340,275
    
    
    
    278,851Interest on documents (3)
    
    
    184,852
    
    
    
    195,069
    
    
    
    146,321Interest on mortgage loans
    
    
    97,057
    
    
    
    104,016
    
    
    
    112,498Interest on pledged loans (4)
    
    
    64,499
    
    
    
    55,081
    
    
    
    51,258Interest on credit card loans
    
    
    117,952
    
    
    
    183,369
    
    
    
    210,058Interest on other loans (5)
    
    
    1,032,837
    
    
    
    1,243,788
    
    
    
    1,538,828Interest on other receivables from financial intermediation
    
    
    14,416
    
    
    
    74
    
    
    
    966Interest on financial leases
    
    
    73,481
    
    
    
    49,433
    
    
    
    42,991Income from government and private securities, net
    
    
    641,299
    
    
    
    1,370,981
    
    
    
    988,707Income from guaranteed loans (6)
    
    
    37,043
    
    
    
    7,232
    
    
    
    62,053Net income from options
    
    
    261
    
    
    
    
    
    
    
    616CER (Indexation by benchmark stabilization coefficient) adjustment (7)
    
    
    70,477
    
    
    
    18,652
    
    
    
    46,176CVS (Indexation by salary variation coefficient) adjustment
    
    
    818
    
    
    
    728
    
    
    
    688Difference in quoted prices of gold and foreign currency
    
    
    143,094
    
    
    
    133,731
    
    
    
    160,209Other (8)
    
    
    171,965
    
    
    
    150,169
    
    
    
    74,275Total financial income
    
    
    3,029,860
    
    
    
    3,860,452
    
    
    
    3,728,438
 (1)
    
    See note 4.2 to our audited consolidated financial statements for the year ended December
31, 2010.(2)
    
    The results of operations of Banco Privado are consolidated with Banco Macro from September
20, 2010.(3)
    
    Includes income on factoring, check cashing advances and loans with promissory notes.(4)
    
    Includes primarily income on secured automobile loans.(5)
    
    Includes interest on loans not classified under prior headings , including interest on
personal loans.(6)
    
    Includes income on loans to the Argentine government that were issued in exchange for federal
and provincial government bonds.(7)
    
    Includes CER accrued for all the assets subject to adjustment by CER.(8)
    
    Principally results from pre-financing and financing export transactions and premiums on repos.
 2010 and 2009 
  66




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##### Table of Contents



2009 and 2008 
      Changes in financial income
 December 31 2008
    
    
    December 31 2009
    
    
    December 31 2010vs.
    
    
    vs.
    
    
    vs.December 31 2007
    
    
    December 31 2008
    
    
    December 31 2009Increase (Decrease)
    
    
    Increase (Decrease)
    
    
    Increase (Decrease)(in thousands of pesos)Due to changes in the volume of interest-earning assets
    
    
    575,552
    
    
    
    415,524
    
    
    
    417,730Due to changes in average nominal rates of interest-earning assets
    
    
    373,687
    
    
    
    556,974
    
    
    
    (572,891
    )Net change
    
    
    949,239
    
    
    
    972,498
    
    
    
    (155,161
    )
 Changes in financial income due to changes in volume
 December 31 2008
    
    
    December 31 2009
    
    
    December 31 2010vs.
    
    
    vs.
    
    
    vs.December 31 2007
    
    
    December 31 2008
    
    
    December 31 2009Increase (Decrease)
    
    
    Increase (Decrease)
    
    
    Increase (Decrease)(in thousands of pesos)Government securities
    
    
    51,613
    
    
    
    353,671
    
    
    
    17,666Loans to private and financial sector
    
    
    546,098
    
    
    
    53,321
    
    
    
    407,577Loans to public sector
    
    
    (635
    )
    
    
    (36,236
    )
    
    
    (5,270
    )Other assets
    
    
    (21,524
    )
    
    
    44,768
    
    
    
    (2,243
    )Net change
    
    
    575,552
    
    
    
    415,524
    
    
    
    417,730
  67




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Changes in financial income due to changes in nominal rates
 December 31 2008
    
    
    December 31 2009
    
    
    December 31 2010vs.
    
    
    vs.
    
    
    vs.December 31 2007
    
    
    December 31 2008
    
    
    December 31 2009Increase (Decrease)
    
    
    Increase (Decrease)
    
    
    Increase (Decrease)(in thousands of pesos)Government securities
    
    
    45,829
    
    
    
    318,338
    
    
    
    (297,253
    )Loans to private and financial sector
    
    
    263,966
    
    
    
    214,313
    
    
    
    (236,004
    )Loans to public sector
    
    
    (12,882
    )
    
    
    22,375
    
    
    
    99,691Other assets
    
    
    76,774
    
    
    
    1,948
    
    
    
    (139,325
    )Net change
    
    
    373,687
    
    
    
    556,974
    
    
    
    (572,891
    )
 Financial expenses
  Year Ended December 31,2008
    
    
    2009 (1)
    
    
    2010 (2)(in thousands of pesos)Interest on checking accounts
    
    
    17,708
    
    
    
    16,423
    
    
    
    4,073Interest on savings accounts
    
    
    14,534
    
    
    
    17,094
    
    
    
    19,639Interest on time deposits
    
    
    933,881
    
    
    
    1,146,013
    
    
    
    954,465Interest on interfinancing received loans (received call)
    
    
    3,909
    
    
    
    2,679
    
    
    
    4,444Interest on other financing from the financial institutions
    
    
    28
    
    
    
    62
    
    
    
    6Interest on other liabilities from financial intermediation (3)
    
    
    91,083
    
    
    
    81,510
    
    
    
    62,889Interest on subordinated corporate bonds
    
    
    47,523
    
    
    
    54,874
    
    
    
    57,381Other interest
    
    
    8,762
    
    
    
    2,692
    
    
    
    1,961Net loss from options
    
    
    
    
    
    
    1
    
    
    
    CER adjustment (4)
    
    
    32,946
    
    
    
    4,341
    
    
    
    4,890Contribution to Deposit Guarantee Fund
    
    
    25,945
    
    
    
    30,038
    
    
    
    35,151Other (5)
    
    
    165,743
    
    
    
    155,880
    
    
    
    185,271Total financial expenses
    
    
    1,342,062
    
    
    
    1,511,607
    
    
    
    1,330,170
 (1)
    
    See note 4.2 to our audited consolidated financial statements for the year ended December
31, 2010.(2)
    
    The results of operations of Banco Privado are consolidated with Banco Macro from September
20, 2010.(3)
    
    Includes lines of credit from other banks, repurchase agreements and liquidity assistance from the Central Bank.(4)
    
    Includes CER accrued for all the liabilities subject to adjustment by CER.(5)
    
    Mainly resulting from turnover tax.
 2010 and 2009 -
    2009 and 2008
    68




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Changes in financial expense
 December 31 2008
    
    
    December 31 2009
    
    
    December 31 2010vs.
    
    
    vs.
    
    
    vs.December 31 2007
    
    
    December 31 2008
    
    
    December 31 2009Increase (Decrease)
    
    
    Increase (Decrease)
    
    
    Increase (Decrease)(in thousands of pesos)Financial Expense
due to changes in
the volume of
interest-bearing
liabilities
    
    
    266,157
    
    
    
    111,170
    
    
    
    154,225Financial Expense
due to changes in
average nominal
rates of
interest-bearing
liabilities
    
    
    218,692
    
    
    
    31,052
    
    
    
    (370,221
    )Net change
    
    
    484,849
    
    
    
    142,222
    
    
    
    (215,996
    )
 Changes in financial expense due to changes in volume
 December 31 2008
    
    
    December 31 2009
    
    
    December 31 2010vs.
    
    
    vs.
    
    
    vs.December 31 2007
    
    
    December 31 2008
    
    
    December 31 2009Increase (Decrease)
    
    
    Increase (Decrease)
    
    
    Increase (Decrease)(in thousands of pesos)Deposits
    
    
    276,410
    
    
    
    154,251
    
    
    
    156,739Borrowings from Central Bank and other financial institutions
    
    
    (8,151
    )
    
    
    (24,951
    )
    
    
    (1,644
    )Corporate Bonds
    
    
    14,163
    
    
    
    (3,004
    )
    
    
    (870
    )Other liabilities
    
    
    (16,265
    )
    
    
    (15,126
    )
    
    
    Net change
    
    
    266,157
    
    
    
    111,170
    
    
    
    154,225
 Changes in financial expense due to changes in nominal rates
 December 31 2008
    
    
    December 31 2009
    
    
    December 31 2010vs.
    
    
    vs.
    
    
    vs.December 31 2007
    
    
    December 31 2008
    
    
    December 31 2009Increase (Decrease)
    
    
    Increase (Decrease)
    
    
    Increase (Decrease)(in thousands of pesos)Deposits
    
    
    193,460
    
    
    
    57,451
    
    
    
    (358,243
    )Borrowings from Central Bank and other financial institutions
    
    
    1,545
    
    
    
    (11,833
    )
    
    
    (8,946
    )Corporate Bonds
    
    
    (1,723
    )
    
    
    108
    
    
    
    (121
    )Other liabilities
    
    
    25,410
    
    
    
    (14,674
    )
    
    
    (2,911
    )Net change
    
    
    218,692
    
    
    
    31,052
    
    
    
    (370,221
    )
 Provision for loan losses
 2010 and 2009 -
 2009 and 2008 -
 Service charge income
  Year Ended December 31,2008 (1)
    
    
    2009 (1)
    
    
    2010 (2)(in thousands of pesos)Service charges on deposit accounts
    
    
    587,259
    
    
    
    669,564
    
    
    
    816,100Debit and credit card income
    
    
    153,210
    
    
    
    171,746
    
    
    
    222,537Other fees related to foreign trade
    
    
    19,428
    
    
    
    26,786
    
    
    
    28,358Credit-related fees
    
    
    63,669
    
    
    
    60,741
    
    
    
    96,574Capital markets and securities activities
    
    
    2,517
    
    
    
    1,721
    
    
    
    2,079
  69




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##### Table of Contents



Year Ended December 31,2008 (1)
    
    
    2009 (1)
    
    
    2010 (2)(in thousands of pesos)Lease of safe-deposit boxes
    
    
    16,282
    
    
    
    21,015
    
    
    
    32,053Fees related to guarantees
    
    
    1,750
    
    
    
    629
    
    
    
    647Other (3)
    
    
    47,585
    
    
    
    98,073
    
    
    
    126,193Total service charge income
    
    
    891,700
    
    
    
    1,050,275
    
    
    
    1,324,541
 (1)
    
    See note 4.2 to our audited consolidated financial statements for the year ended December
31, 2010.(2)
    
    The results of operations of Banco Privado are consolidated with Banco Macro from September
20, 2010.(3)
    
    Includes insurance income.
 2010 and 2009
 2009 and 2008 :
 Service charge expenses
   Administrative expenses
  Year Ended December 31,2008 (1)
    
    
    2009 (1)
    
    
    2010 (2)(in thousands of pesos)Personnel expenses
    
    
    798,236
    
    
    
    966,963
    
    
    
    1,233,898Directors and statutory auditors fees
    
    
    26,941
    
    
    
    36,413
    
    
    
    59,391Other professional fees
    
    
    55,012
    
    
    
    65,533
    
    
    
    81,169Advertising and publicity
    
    
    53,178
    
    
    
    46,861
    
    
    
    63,437Taxes
    
    
    70,994
    
    
    
    79,784
    
    
    
    102,547Depreciation of equipment
    
    
    50,543
    
    
    
    53,993
    
    
    
    58,285Amortization of organization costs
    
    
    25,557
    
    
    
    33,317
    
    
    
    43,273Maintenance, conservation and repair expenses
    
    
    48,251
    
    
    
    68,620
    
    
    
    78,032Security services
    
    
    42,241
    
    
    
    47,668
    
    
    
    61,102Electric power and communications
    
    
    37,240
    
    
    
    46,054
    
    
    
    48,529Lease payments
    
    
    21,769
    
    
    
    34,638
    
    
    
    40,526Insurance
    
    
    6,090
    
    
    
    7,331
    
    
    
    9,902Stationery and office supplies
    
    
    15,335
    
    
    
    11,817
    
    
    
    10,339Other
    
    
    18,615
    
    
    
    23,428
    
    
    
    26,884Total administrative expenses
    
    
    1,270,002
    
    
    
    1,522,420
    
    
    
    1,917,314
 (1)
    
    See note 4.2 to our audited consolidated financial statements for the year ended December 31,
2010.(2)
    
    The results of operations of Banco Privado are consolidated with Banco Macro from September 20,
2010.
 2010 and 2009
   2009 and 2008
 Net other income (expense)
   70




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##### Table of Contents



Income tax
    B. Liquidity and Capital Resources
             71




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##### Table of Contents



Minimum capital requirements
  As of December 31,2008
    
    
    2009
    
    
    2010(in thousands of pesos, exceptratios and percentages)Calculation of excess capital:Allocated to assets at risk
    
    
    939,296
    
    
    
    970,578
    
    
    
    1,261,695Allocated to Bank premises and equipment, intangible assets and equity investment assets
    
    
    87,113
    
    
    
    95,705
    
    
    
    122,669Market risk(1)
    
    
    49,899
    
    
    
    39,764
    
    
    
    55,857Interest rate risk
    
    
    204,510
    
    
    
    201,451
    
    
    
    283,150Government sector and securities in investment account
    
    
    60,780
    
    
    
    36,544
    
    
    
    38,476Required minimum capital under Central Bank Rules
    
    
    1,341,598
    
    
    
    1,344,042
    
    
    
    1,761,847Basic net worth
    
    
    2,688,679
    
    
    
    3,193,973
    
    
    
    3,621,564Complementary net worth
    
    
    625,756
    
    
    
    691,107
    
    
    
    959,851Deductions
    
    
    (200,610
    )
    
    
    (176,784
    )
    
    
    (257,277
    )Total capital under Central Bank Rules
    
    
    3,113,825
    
    
    
    3,708,296
    
    
    
    4,324,138Excess capital
    
    
    1,772,227
    
    
    
    2,364,254
    
    
    
    2,562,291Selected capital and liquidity ratios:Regulatory capital/risk weighted assets
    
    
    22.95
    %
    
    
    27.38
    %
    
    
    24.74
    %Average shareholders equity as a percentage of average total assets
    
    
    12.71
    %
    
    
    12.75
    %
    
    
    13.30
    %Total liabilities as a multiple of total shareholders equity
    
    
    6.95
    x
    
    
    7.00
    x
    
    
    7.07
    xCash as a percentage of total deposits
    
    
    22.26
    %
    
    
    26.98
    %
    
    
    22.22
    %Liquid assets as a percentage of total deposits (2)
    
    
    48.80
    %
    
    
    53.70
    %
    
    
    40.71
    %Loans as a percentage of total assets
    
    
    50.29
    %
    
    
    41.31
    %
    
    
    47.46
    %
 (1)
    
    Average Var for December.(2)
    
    Liquid assets include cash, LEBACs, NOBACs, interbanking loans and overnight loans to highly
rated companies.
  Funding
  As of December 312008 (1)
    
    
    2009 (1)
    
    
    2010(in thousands of pesos)DepositsFrom the non-financial government sector
    
    
    3,937,961
    
    
    
    3,613,924
    
    
    
    5,216,109From the financial sector
    
    
    22,438
    
    
    
    14,052
    
    
    
    15,776From the non-financial private sector and foreign residentsChecking accounts
    
    
    2,581,060
    
    
    
    3,275,826
    
    
    
    4,178,758Savings accounts
    
    
    2,716,913
    
    
    
    3,445,577
    
    
    
    4,526,697Time deposits
    
    
    6,031,882
    
    
    
    7,711,471
    
    
    
    8,714,101Investment accounts (2)
    
    
    155,936
    
    
    
    52,286
    
    
    
    178,010Other (3)
    
    
    321,020
    
    
    
    416,503
    
    
    
    518,807Accrued interest, adjustments, foreign exchange and quoted price
differences payable
    
    
    61,147
    
    
    
    63,227
    
    
    
    59,135Borrowing from Central Bank and financial institutionsCentral Bank
    
    
    302,760
    
    
    
    1,897
    
    
    
    1,877Banks and international institutions
    
    
    232,422
    
    
    
    227,214
    
    
    
    45,697Financing received from Argentine financial institutions
    
    
    73,806
    
    
    
    189,971
    
    
    
    76,870Other
    
    
    627,140
    
    
    
    733,943
    
    
    
    1,173,873Minority interest in subsidiaries
    
    
    15,568
    
    
    
    20,684
    
    
    
    27,499Non-subordinated Corporate Bonds
    
    
    724,873
    
    
    
    616,735
    
    
    
    636,464Subordinated Corporate Bonds
    
    
    521,681
    
    
    
    572,473
    
    
    
    598,470Shareholders equity
    
    
    2,821,911
    
    
    
    3,358,801
    
    
    
    4,152,842Total funding
    
    
    21,148,518
    
    
    
    24,314,584
    
    
    
    30,120,985
 (1)
    
    See note 4.2 to our audited consolidated financial statements for the year ended December
31, 2010.(2)
    
    Time deposit payable at the option of the depositor.(3)
    
    Includes, among others, expired time deposits and judicial deposits.
  72




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Critical accounting policies
   Income tax
        Exposure to the Argentine public sector and private securities
 PGNs
     73




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Instruments issued by the Central Bank and other unlisted securities
   Government securities
     Allowance for loan losses
      74




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Credit card loans
  Impaired loansNon Financial Private Sector and residents abroad
  Interest recognitionnon-accrual loans
    75




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Business combination
   Fair value of financial and non-financial instruments
   Level 1: Unadjusted quoted prices for identical assets or liabilities in an active market that
the Bank has the ability to access.
 Level 2: Other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly. Level 2 inputs include the following:
 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.
 Level 3: Prices or valuation techniques that require inputs that are both unobservable and
significant to the overall fair value measurement. These inputs reflect managements own
assumptions about the assumptions a market participant would use in pricing the asset or
liability.
     Repurchase agreements
     76




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C. Research and Development, Patents and Licenses, Etc.
  D. Trend Information
  International context
   Argentine economic performance
   
 
 
 
 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, 2010 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 8% as of December 31, 2010
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).
  77




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
    
    Stable intermediation spread. Based on the low banking penetration in Argentina, we
believe that the expected loan growth mix, with a larger participation of consumer loans
compared to commercial loans, will improve spreads. However, price competition could
offset this effect and intermediation spreads might remain stable.
 Lending portfolio credit quality
    As of December 31,2008
    
    
    2009
    
    
    2010Banco MacroAllowances/lending (1)
    
    
    3.6
    %
    
    
    3.7
    %
    
    
    3.1
    %Non-performing lending ratio (2)
    
    
    2.6
    %
    
    
    3.2
    %
    
    
    2.1
    %Financial SystemAllowances/lending (1)
    
    
    2.9
    %
    
    
    3.1
    %
    
    
    2.4
    %Non-performing lending ratio (2)
    
    
    2.5
    %
    
    
    2.8
    %
    
    
    1.7
    %
 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troubled/medium
risk, 4with high risk of insolvency/high risk, 5irrecoverable and 6irrecoverable
according to Central Bank Rules under the Central Bank loan classification system.
   Organic growth complemented by strategic acquisitions
    Commercial and balance sheet strategies
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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
    
    
    1,877
    
    
    
    1,452
    
    
    
    
    
    
    
    
    
    
    
    425Banks and international institutions
    
    
    45,697
    
    
    
    45,697
    
    
    
    
    
    
    
    
    
    
    
    Corporate Bonds
    
    
    636,464
    
    
    
    16,393
    
    
    
    197,066
    
    
    
    
    
    
    
    423,005Financing received from Argentine financial institutions
    
    
    75,637
    
    
    
    34,893
    
    
    
    9,342
    
    
    
    14,766
    
    
    
    16,636Other
    
    
    1,175,106
    
    
    
    1,093,308
    
    
    
    2,847
    
    
    
    237
    
    
    
    78,714Operating leases
    
    
    75,637
    
    
    
    27,270
    
    
    
    30,906
    
    
    
    12,781
    
    
    
    4,680Subordinated corporate bonds
    
    
    598,470
    
    
    
    2,100
    
    
    
    
    
    
    
    
    
    
    
    596,370Total contractual obligations
    
    
    2,608,888
    
    
    
    1,221,113
    
    
    
    240,161
    
    
    
    27,784
    
    
    
    1,119,830Commercial commitmentsLines of credit
    
    
    67,020
    
    
    
    67,020
    
    
    
    
    
    
    
    
    
    
    
    Guarantees
    
    
    196,876
    
    
    
    65,289
    
    
    
    20,642
    
    
    
    15,031
    
    
    
    95,914Standby letters of credit
    
    
    80,684
    
    
    
    79,576
    
    
    
    1,108
    
    
    
    
    
    
    
    Total commercial commitments
    
    
    344,580
    
    
    
    211,885
    
    
    
    21,750
    
    
    
    15,031
    
    
    
    95,914
 
 Item 6.
    
    Directors, Senior Management and Employees
 A. Directors and Senior Management
   79




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DUTIES AND LIABILITIES OF DIRECTORS
   BOARD OF DIRECTORS
  Year First
    
    Year of ExpirationName
    
    Position
    
    Age
    
    Appointed
    
    of TermJorge Horacio Brito
    
    Chairman
    
    58
    
    2002
    
    2011Delfín Jorge Ezequiel Carballo
    
    Vice Chairman
    
    58
    
    2002
    
    2011Jorge Pablo Brito
    
    Director
    
    31
    
    2002
    
    2011Marcos Brito
    
    Director
    
    28
    
    2007
    
    2011Juan Pablo Brito Devoto
    
    Director
    
    50
    
    2002
    
    2010Roberto Julio Eilbaum
    
    Director
    
    66
    
    2002
    
    2010Luis Carlos Cerolini
    
    Director
    
    56
    
    2002
    
    2010Carlos Enrique Videla
    
    Director
    
    65
    
    2002
    
    2012Alejandro Macfarlane
    
    Director
    
    45
    
    2005
    
    2012Guillermo Eduardo Stanley
    
    Director
    
    62
    
    2006
    
    2012Constanza Brito
    
    Director
    
    29
    
    2007
    
    2012Rafael Magnanini
    
    Director
    
    51
    
    2010
    
    2012Mario Eduardo Bartolomé
    
    Alternate director
    
    65
    
    2004
    
    2011Ernesto Eduardo Medina
    
    Alternate director
    
    43
    
    2002
    
    2011Delfin Federico Ezequiel Carballo
    
    Alternate director
    
    26
    
    2009
    
    2011Fernando Raúl García Pulles
    
    Alternate director
    
    55
    
    2007
    
    2011
  Year First
    
    Year of ExpirationName
    
    Position
    
    Age
    
    Appointed
    
    of TermJorge Horacio Brito
    
    Chairman
    
    58
    
    2002
    
    2011Delfín Jorge Ezequiel Carballo
    
    Vice Chairman
    
    58
    
    2002
    
    2011Jorge Pablo Brito
    
    Director
    
    31
    
    2002
    
    2011Marcos Brito
    
    Director
    
    28
    
    2007
    
    2011Juan Pablo Brito Devoto
    
    Director
    
    51
    
    2002
    
    2013Luis Carlos Cerolini
    
    Director
    
    57
    
    2002
    
    2013Carlos Enrique Videla
    
    Director
    
    66
    
    2002
    
    2012Alejandro Macfarlane
    
    Director
    
    45
    
    2005
    
    2012Guillermo Eduardo Stanley
    
    Director
    
    63
    
    2006
    
    2012Constanza Brito
    
    Director
    
    29
    
    2007
    
    2012Rafael Magnanini
    
    Director
    
    52
    
    2010
    
    2012Roberto José Feletti (1)
    
    Director
    
    52
    
    2011
    
    2013Mario Eduardo Bartolomé
    
    Alternate director
    
    65
    
    2004
    
    2011Ernesto Eduardo Medina
    
    Alternate director
    
    44
    
    2002
    
    2011Delfin Federico Ezequiel Carballo
    
    Alternate director
    
    26
    
    2009
    
    2011Fernando Raúl García Pulles
    
    Alternate director
    
    56
    
    2007
    
    2011
 (1)
    
    Roberto José Feletti was elected by ANSES, through the exercise of its
cumulative voting rights. See Item 10 Additional Information  Memorandum and Articles of
AssociationQuorum and voting requirements for a description of cumulative voting.
   80




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SENIOR MANAGEMENT
   Names
    
    Position
    
    Age
    
    Year First 
AppointedJorge Horacio Brito
    
    Chief Executive Officer
    
    58
    
    2002Delfín Jorge Ezequiel Carballo
    
    Chief Financial Officer
    
    58
    
    2002Juan Pablo Brito Devoto
    
    Chief Accounting Officer
    
    50
    
    2002Jorge Pablo Brito
    
    Coordinator of the executive committee
    
    31
    
    2006Guillermo Goldberg
    
    Deputy general manager
    
    53
    
    2007Ernesto Eduardo Medina
    
    Deputy general manager
    
    43
    
    2007Jorge Francisco Scarinci
    
    Financial and investor relations manager
    
    40
    
    2006Ana María Magdalena Marcet
    
    Credit risk manager
    
    49
    
    2002Miguel Leon Gurfinkiel
    
    Government portfolio manager
    
    60
    
    2006Horacio Ricardo Sistac
    
    Corporate banking manager
    
    54
    
    2005Francisco Muro
    
    Retail banking manager
    
    37
    
    2008Brian Anthony
    
    Distribution and sales manager
    
    37
    
    2005Eduardo Roque Covello
    
    Operations manager
    
    53
    
    2004Gerardo Adrián Alvarez
    
    Administration manager
    
    41
    
    2010Daniel Hugo Violatti
    
    Accountancy and tax manager
    
    48
    
    2003Constanza Brito
    
    Human resources and organization and processes manager
    
    29
    
    2005Marcelo de la Llave
    
    Security and fraud control manager
    
    47
    
    2010Claudia Cueto
    
    Systems manager
    
    50
    
    2010Byron Fabian Arias Jaramillo
    
    Systems security manager
    
    31
    
    2010Carmen Esther Estévez
    
    Internal audit manager
    
    53
    
    2002María Milagro Medrano
    
    Institutional relations manager
    
    34
    
    2002Ernesto López
    
    Legal manager
    
    38
    
    2008Alberto Figueroa
    
    Management control and relationship with the regulatory authorities manager
    
    50
    
    2009Sebastian Palla
    
    Investment banking manager
    
    36
    
    2010
  Asociación de Bancos Argentinos ADEBA) Banco del Tucumán S.A. Macro Securities S.A. Sociedad de Bolsa, Inversora Juramento S.A. Banco
Privado de Inversiones S.A.
 , Banco del Tucumán S.A.,Macro Securities S.A. Sociedad de Bolsa Banco Privado de
Inversiones S.A.
 Macro Warrants S.A., as vice-chairman of the Board of
Directors of Inversora Juramento S.A., Banco del Tucumán S.A., Sud Inversiones &
Análisis S.A., Macro Securities S.A. Sociedad de Bolsa Banco Privado de Inversiones S.A.
 Inversora Juramento S.A. Banco Privado de Inversiones S.A.
 Macro Bank, and Sud
Inversiones & Análisis S.A., Banco Privado de Inversiones S.A. Banco del Tucumán S.A. and Macro Securities S.A. Sociedad de Bolsa.
  81




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Provincanje S.A. Banco del Tucumán S.A., Sud Inversiones & Análisis S.A., Macro Securities S.A. Sociedad
de Bolsa, Macro Warrants S.A., Banco Privado de Inversiones S.A. and ACH S.A. Cámara Compensadora
Electrónica.
  Empresa Distribuidora y Comercializadora Norte or Edenor
S.A
 Havanna S.A.
 Banco Privado de Inversiones S.A. Banco del Tucumán S.A.
  Corporacion Andina de Fomento C.A.F. Consejo Consultivo del Banco Latinoamericano de Exportaciones (BLADEX)
    Estudio OFarrell
        82




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Torcuato Di Tella
   Universidad Argentina de la Empresa
   Banco del Tucumán S.A.
   Torcuato Di Tella
 B. Compensation
     83




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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 EndsAlejandro Almarza
    
    Syndic
    
    52
    
    2010
    
    April 2011Santiago Marcelo Maidana
    
    Syndic
    
    80
    
    2010
    
    April 2011Leonardo Pablo Cortigiani
    
    Syndic
    
    42
    
    2010
    
    April 2011Carlos Javier Piazza
    
    Alternate syndic
    
    52
    
    2010
    
    April 2011Horacio Della Rocca
    
    Alternate syndic
    
    57
    
    2010
    
    April 2011Alejandro Carlos Piazza
    
    Alternate syndic
    
    56
    
    2010
    
    April 2011
  Year of
    
    CurrentName
    
    Position
    
    Age
    
    Appointment
    
    Term EndsAlejandro Almarza
    
    Syndic
    
    53
    
    2011
    
    April 2012Roberto Julio Eilbaum
    
    Syndic
    
    66
    
    2011
    
    April 2012Vivian Haydee Stenghele (1)
    
    Syndic
    
    41
    
    2011
    
    April 2012Carlos Javier Piazza
    
    Alternate syndic
    
    52
    
    2011
    
    April 2012Alejandro Carlos Piazza
    
    Alternate syndic
    
    56
    
    2011
    
    April 2012Javier Rodrigo Siñeriz (1)
    
    Alternate syndic
    
    40
    
    2011
    
    April 2012
 (1)
    
    Vivian Haydee Stenghele and Javier Rodrigo Siñeriz were elected by ANSES, through the exercise
of its cumulative voting rights. See Item 10 Additional Information  Memorandum and Articles of
Association  Quorum and voting requirements for a description of cumulative voting.
  84




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Macro
Securities S.A. Sociedad de Bolsa Sud Inversiones & Análisis S.A Banco del Tucumán S.A. Banco Privado de Inversiones S.A.
  Nucleoelectrica Argentina S.A. Nacion Factoring S.A. S.A. San Miguel
 Macro Fondos S.A. Sociedad Gerente de Fondos Comunes de Inversion S.A Macro Securities S.A. Sociedad de Bolsa, Sud Inversiones & Análisis S.A Banco Privado de Inversiones S.A.
 of Macro Fondos S.A. Sociedad Gerente
de Fondos Comunes de Inversión S.A. Macro Securities S.A. Sociedad de
Bolsa Sud Inversiones & Análisis S.A., Banco del Tucumán S.A. Banco Privado de Inversiones
S.A.
 Pellegrini S.A. Gerente de Fondos Communes de Inversión, Nación Factoring S.A. and Intercargo SAC Nación Leasing S.A., Nación Servicios S.A., Energia Argentina S.A., Fabrica Argentina de Aviones Brig. San Martin S.A., Lineas Aereas Federales S.A., Operadora Ferroviares SE and Tandanor SAClyN.
 Audit Committee
     Year ofName
    
    Position
    
    Age
    
    Appointment
    
    StatusGuillermo Eduardo Stanley
    
    Chairman
    
    62
    
    2007
    
    IndependentCarlos Enrique Videla
    
    Vice Chairman
    
    65
    
    2007
    
    IndependentAlejandro Macfarlane
    
    Member
    
    45
    
    2007
    
    IndependentFernando Raúl García Pulles
    
    Alternate Member
    
    55
    
    2007
    
    Independent
  85




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Committees Reporting to the Board of Directors and to the CEO and the CFO
  Executive committee
  Name
    
    PositionJorge Horacio Brito
    
    ChairmanDelfín Jorge Ezequiel Carballo
    
    Vice ChairmanJorge Pablo Brito
    
    Director  coordinator
 Internal audit committee.
  Name
    
    PositionConstanza Brito
    
    DirectorJuan Pablo Brito Devoto
    
    DirectorCarlos Enrique Videla
    
    Director  IndependentCarmen Esther Estévez
    
    Internal audit manager  coordinator
 Systems.
   Name
    
    PositionJorge Pablo Brito
    
    DirectorJuan Pablo Brito Devoto
    
    DirectorGuillermo Goldberg
    
    Deputy general managerErnesto Eduardo Medina
    
    Deputy general managerClaudia Cueto
    
    Systems manager  coordinatorEduardo Roque Covello
    
    Operations managerBrian Anthony
    
    Distribution and Sales ManagerConstanza Brito
    
    Human Resources and Organization and Processes managerMaría Milagro Medrano
    
    Institutional relations managerDaniel Hugo Violatti
    
    Accountancy and Tax managerByron Fabián Arias
    
    Systems security manager
 Senior credit committee.
  Name
    
    PositionJorge Horacio Brito
    
    ChairmanDelfín Jorge Ezequiel Carballo
    
    Vice ChairmanJorge Pablo Brito
    
    DirectorAna María Magdalena Marcet
    
    Credit Risk manager  coordinator
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Committee on assets and liabilities.
  Name
    
    PositionDelfin Jorge Ezequiel Carballo
    
    Vice ChairmanJorge Pablo Brito
    
    DirectorRoberto Julio Eilbaum (1)
    
    DirectorGuillermo Goldberg
    
    Deputy general managerJorge Francisco Scarinci
    
    Financial and Investor relations manager  coordinatorBrian Anthony
    
    Distribution and Sales managerHoracio Ricardo Sistac
    
    Corporate banking managerFrancisco Muro
    
    Retail banking managerMarcos Brito
    
    Director
 (1)
    
    As from April 26, 2011 Mr. Eilbaum is no longer a Director.
 Operational Risk committee
  Name
    
    PositionJorge Pablo Brito
    
    DirectorConstanza Brito
    
    DirectorGuillermo Goldberg
    
    Deputy general managerErnesto Eduardo Medina
    
    Deputy general managerAlberto Figueroa
    
    Management Control manager
 Anti-money laundering committee
  Name
    
    PositionLuis Carlos Cerolini
    
    DirectorRoberto Julio Eilbaum (1)
    
    DirectorErnesto Eduardo Medina
    
    Deputy general managerAlberto Figueroa
    
    Management Control manager
 (1)
    
    As from April 26, 2011 Mr. Eilbaum is no longer a Director.
 Senior Legal Recovery committee.
  87




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Name
    
    PositionLuis Carlos Cerolini
    
    DirectorJorge Pablo Brito
    
    DirectorJuan Pablo Brito Devoto
    
    DirectorErnesto López
    
    Legal manager-coordinatorAna María Magdalena Marcet
    
    Credit Risk managerMarcos Brito
    
    Director
 D. Employees
  As of December 31,Employees
    
    2008
    
    
    2009
    
    
    2010Headquarters
    
    
    2,805
    
    
    
    2,775
    
    
    
    3,081Branches
    
    
    5,168
    
    
    
    5,088
    
    
    
    5,128Total
    
    
    7,973
    
    
    
    7,863
    
    
    
    8,209
 E. Share Ownership
   Number of Class A
    
    
    Number of Class B
    
    
    Percentage of
    
    
    Percentage ofShareholder Name
    
    shares owned
    
    
    shares owned
    
    
    Capital stock (%)
    
    
    Voting rights(%)Jorge Horacio Brito
    
    
    5,362,889
    
    
    
    115,140,594
    
    
    
    20.27
    %
    
    
    22.20
    %Delfín Jorge Ezequiel Carballo
    
    
    4,895,416
    
    
    
    106,605,523
    
    
    
    18.76
    %
    
    
    20.50
    %Juan Pablo Brito Devoto
    
    
    281,590
    
    
    
    5,020,799
    
    
    
    0.89
    %
    
    
    1.01
    %Luis Carlos Cerolini
    
    
    
    
    
    
    7,500
    
    
    
    0.00
    %
    
    
    0.00
    %Carlos Enrique Videla
    
    
    5,874
    
    
    
    
    
    
    
    0.00
    %
    
    
    0.00
    %Total
    
    
    10,545,769
    
    
    
    226,774,416
    
    
    
    39.92
    %
    
    
    43.71
    %
   Number of Class A
    
    
    Number of Class B
    
    
    Percentage of
    
    
    Percentage ofShareholder Name
    
    shares owned
    
    
    shares owned
    
    
    Capital stock (%)
    
    
    Voting rights(%)Jorge Horacio Brito
    
    
    5,362,889
    
    
    
    114,443,904
    
    
    
    20.15
    %
    
    
    22.09
    %Delfín Jorge Ezequiel Carballo
    
    
    4,895,416
    
    
    
    105,908,833
    
    
    
    18.64
    %
    
    
    20.39
    %Juan Pablo Brito Devoto
    
    
    281,590
    
    
    
    5,020,799
    
    
    
    0.89
    %
    
    
    1.01
    %Luis Carlos Cerolini
    
    
    
    
    
    
    9
    
    
    
    0.00
    %
    
    
    0.00
    %Carlos Enrique Videla
    
    
    5,874
    
    
    
    
    
    
    
    0.00
    %
    
    
    0.00
    %Total
    
    
    10,545,769
    
    
    
    225,373,545
    
    
    
    39.68
    %
    
    
    43.49
    %
 
 Item 7.
    
    Major Shareholders and Related Party Transactions
 A. Major Shareholders
    88




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##### Table of Contents



Number of
    
    
    Number ofClass A shares
    
    
    Class B shares
    
    
    
    
    
    
    Percentage of
    
    
    Percentage ofShareholder Name
    
    owned
    
    
    owned
    
    
    Total
    
    
    capital stock (%)
    
    
    Voting rights (%)ANSES
    
    
    
    
    
    
    182,210,297
    
    
    
    182,210,297
    
    
    
    30.65
    %
    
    
    28.50
    %Jorge Horacio Brito
    
    
    5,362,889
    
    
    
    115,140,594
    
    
    
    120,503,483
    
    
    
    20.27
    %
    
    
    22.20
    %Delfín Jorge Ezequiel Carballo
    
    
    4,895,416
    
    
    
    106,605,523
    
    
    
    111,500,939
    
    
    
    18.76
    %
    
    
    20.50
    %Other Shareholders
    
    
    977,365
    
    
    
    179,293,084
    
    
    
    180,270,449
    
    
    
    30.32
    %(1)
    
    
    28.80
    %Total
    
    
    11,235,670
    
    
    
    583,249,498
    
    
    
    594,485,168
    
    
    
    100.00
    %
    
    
    100.00
    %
 (1)
    
    The 24.91% of capital stock is held in the form of ADSs issued by The Bank of
New York.   Number of
    
    
    Number ofClass A shares
    
    
    Class B shares
    
    
    
    
    
    
    Percentage of
    
    
    Percentage ofShareholder Name
    
    owned
    
    
    owned
    
    
    Total
    
    
    capital stock (%)
    
    
    Voting rights (%)ANSES
    
    
    
    
    
    
    182,210,297
    
    
    
    182,210,297
    
    
    
    30.65
    %
    
    
    28.50
    %Jorge Horacio Brito
    
    
    5,362,889
    
    
    
    114,443,904
    
    
    
    119,806,793
    
    
    
    20.15
    %
    
    
    22.09
    %Delfín Jorge Ezequiel Carballo
    
    
    4,895,416
    
    
    
    105,908,833
    
    
    
    110,804,249
    
    
    
    18.64
    %
    
    
    20.39
    %Other Shareholders
    
    
    977,365
    
    
    
    180,686,464
    
    
    
    181,663,829
    
    
    
    30.56
    %(1)
    
    
    29.02
    %Total
    
    
    11,235,670
    
    
    
    583,249,498
    
    
    
    594,485,168
    
    
    
    100.00
    %
    
    
    100.00
    %
 (1)
    
    The 24.76% of capital stock is held in the form of ADSs issued by The Bank of New
York.  Outstanding Capital StockDate
    
    (Ps.)
    
    
    Event
    
    Major ShareholdersDecember 31, 2007
    
    
    683,943,437
    
    
    
    
    Jorge H. Brito 18.87%Delfín Jorge Ezequiel Carballo 16.80%February 29, 2008
    
    
    683,978,973
    
    
    Capital Increase (1)
    
    Jorge H. Brito 18.17%Delfín Jorge Ezequiel Carballo 16.56%December 31, 2008
    
    
    683,978,973
    
    
    Transfer of shares (2)
    
    Jorge H. Brito 18.17%Delfín Jorge Ezequiel Carballo 16.56%ANSES 26.62%April 30, 2009
    
    
    623,978,973
    
    
    Capital Decrease (3)
    
    Jorge H. Brito 20.11%Delfín Jorge Ezequiel Carballo 18.15%ANSES 29.18%September 30, 2009
    
    
    594,485,168
    
    
    Capital Increase/Decrease (4) (5)
    
    Jorge H. Brito 20.78%Delfín Jorge Ezequiel Carballo 19.05%ANSES 30.62%December 31, 2010
    
    
    594,485,168
    
    
    
    
    Jorge H. Brito 20.27%Delfín Jorge Ezequiel Carballo 18.76%ANSES 30.65%
 (1)
    
    On June 4 and June 5, 2007, shareholders meetings for Banco Macro and Nuevo Banco Suquía,
respectively, resolved to authorize the merger of Nuevo Banco Suquía into the Bank and an increase
in the capital stock of the Banks 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, as a result of the merger. Although this
capital increase was authorized in 2007, the new shares were issued on February 12, 2008.(2)
    
    On November 20, 2008, the Argentine Congress passed Law No. 26,425 unifying the Argentine
pension and retirement system into a system publicly administered by the National Social Security
Agency (Administración Nacional de la Seguridad Social), or ANSES, eliminating the retirement
savings system previously administered by private pension funds under the supervision of a
governmental agency. In accordance with the new law, private pension funds transferred all of the
assets administered by them under the retirement savings system to ANSES. These transferred assets
included shares of Banco Macro.(3)
    
    Related to the reduction of the capital stock by 60,000,000 registered Class B shares entitled
to 1 vote each with a face value of Ps. 1 per share. These shares were included in the Banks
portfolio and were acquired under section 68, Law No. 17,811, as a result of the macroeconomic
context and fluctuations that the capital market was going through in general. On April 21, 2009,
and after BCBA authorization, the Banks general ordinary and extraordinary shareholders meeting
and special shareholders meeting approved the abovementioned capital reduction. During July 2009,
the CNV authorized, the IGJ registered, and the Central Bank consented to the capital stock
reduction.(4)
    
    Related to the capital increase through the issuance of Ps. 1,147,887 of new common, registered
Class B shares with a face value of Ps. 1, each one entitled to one vote, delivered to the minority
shareholders of former Nuevo Banco Bisel, in the merger process with such bank.(5)
    
    Related to the reduction of the capital stock by 30,641,692 Class B registered shares each one
entitled to one vote, with a face value of ARS 1 per share. These shares were included in the
Banks portfolio and were acquired under section 68, Law No. 17,811 for the same reasons mentioned
in paragraph (3) above. On September 10, 2009, the Banks general ordinary and extraordinary
shareholders meeting approved the abovementioned capital reduction subject to the BCBAs consent.
Subsequently, the BCBA and the CNV approved such capital reduction, the IGJ recorded it and the
Central Bank acknowledged it.  89




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##### Table of Contents



B. Related Party Transactions
       C. Interest of experts and counsel
  
 Item 8.
    
    Financial Information
 A. Consolidated Statements and Other Financial Information
  Legal Proceedings
   Dividend Policy
 pari passu
  Aggregate DividendDividends per Share
    
    
    PaymentBased on financial statements for year ended December 31,
    
    Payment Dates
    
    
    (in pesos)
    
    
    (in millions of 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
    
    September 2009
    
    
    0.25
    
    
    
    149.9
    (1)2009
    
    June 2010
    
    
    0.35
    
    
    
    208.12010
    
    May 2011
    
    
    0.85
    
    
    
    505.3
 (1)
    
    For the fiscal year ended December 31, 2008, dividends paid in cash were Ps.148.3 million based
on the outstanding number of shares on the payment dates.  90




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##### Table of Contents



Central Bank and contractual limitations on distribution of dividends
           Amounts available for distribution and distribution approval process
     Legal reserve requirement
   91




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##### Table of Contents



Personal assets tax
  B. Significant Changes
  
 Item 9.
    
    The Offer and Listing
 A. Offer and listing details
  Ps. per Class B ShareBanco Macro
    
    High
    
    
    Low2011:April
    
    
    18.40
    
    
    
    15.40March
    
    
    17.90
    
    
    
    16.00February
    
    
    19.00
    
    
    
    16.35January
    
    
    21.40
    
    
    
    18.352010:December
    
    
    22.50
    
    
    
    19.10November
    
    
    21.00
    
    
    
    19.002010
    
    
    22.50
    
    
    
    9.402009
    
    
    12.65
    
    
    
    3.362008
    
    
    8.46
    
    
    
    2.122007
    
    
    12.30
    
    
    
    7.202006
    
    
    9.51
    
    
    
    5.3220104th quarter
    
    
    22.50
    
    
    
    16.953rd quarter
    
    
    18.70
    
    
    
    11.602nd quarter
    
    
    12.65
    
    
    
    9.601st quarter
    
    
    12.65
    
    
    
    9.4020094th quarter
    
    
    12.65
    
    
    
    9.203rd quarter
    
    
    9.29
    
    
    
    5.902nd quarter
    
    
    6.55
    
    
    
    3.741st quarter
    
    
    4.19
    
    
    
    3.36
 Source:
    
    BCBA Bulletin.  US$ per ADSBanco Macro (1)
    
    High
    
    
    Low2011:April
    
    
    43.74
    
    
    
    35.95March
    
    
    42.04
    
    
    
    38.21February
    
    
    46.84
    
    
    
    38.65January
    
    
    51.94
    
    
    
    44.982010:December
    
    
    56.57
    
    
    
    47.88November
    
    
    53.73
    
    
    
    47.552010
    
    
    56.57
    
    
    
    23.742009
    
    
    33.85
    
    
    
    8.722008
    
    
    26.67
    
    
    
    4.922007
    
    
    39.11
    
    
    
    22.402006
    
    
    31.96
    
    
    
    18.3520104th quarter
    
    
    56.57
    
    
    
    42.833rd quarter
    
    
    47.46
    
    
    
    28.992nd quarter
    
    
    32.31
    
    
    
    24.581st quarter
    
    
    32.77
    
    
    
    23.7420094th quarter
    
    
    33.85
    
    
    
    23.953rd quarter
    
    
    24.46
    
    
    
    15.192nd quarter
    
    
    17.27
    
    
    
    9.631st quarter
    
    
    12.83
    
    
    
    8.72
 Source:
    
    Reuters(1)
    
    The Bank was first listed on NYSE in March 2006  92




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##### Table of Contents



B. Plan of Distribution
  C. Markets
   D. Selling Shareholders
  E. Dilution
  F. Expenses of the issue
  
 Item 10.
    
    Additional Information
 A. Share Capital
  B. Memorandum and Articles of Association
 General
 sociedad anónima, Estatutos . sociedades anónimas
    Corporate Purpose
   93




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##### Table of Contents



Shareholders liability
 
 Redemption and rights of withdrawal
   Preemptive and accretion rights
     Voting rights
  Registration requirements of foreign companies that hold Class B shares directly
   94




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##### Table of Contents



Liquidation rights
  Ordinary and extraordinary meetings
  Notices of meetings
  Quorum and voting requirements
      95




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##### Table of Contents



Election of directors
  Anti-takeover provisions
  Tender offer regime
 Optional mandatory tender offer regime in the case of a change in control
 Mandatory tender offer or exchange in Argentina
 Regimen de Transparencia de la Oferta
Públíca oferta pública de adquisción
  Concept of a Significant Share
  
    
    Whenever the goal is to acquire participation rights equal to or greater than 35%
of the capital stock and/or the companys votes, the offer must be made for a number
of securities that would enable the purchaser to acquire at least 50% of the voting
capital stock of the affected company.
    
    Whenever an entity already holds participation rights equal to or greater than 35%
of the voting capital stock and/or the companys votes but less than 51% of such
rights, and the intention is to increase such share of the affected companys capital
stock at least 6% during a 12-month period, the offer shall be made on the number of
securities representing at least 10% of the voting capital stock of the affected
company.
    
    Whenever participation rights equal to or greater than 51% of the voting capital
stock and/or the companys votes are sought, the offer shall be made for the number
of securities that would enable the purchaser to obtain 100% of the voting capital
stock of the affected company. The application of this stipulation shall have
priority over the stipulations discussed in the preceding paragraphs.
 Determination of the price of the OPA in the case of a change in control
    96




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##### Table of Contents



Penalties for breach
  Tender offer regime in the case of a voluntary withdrawal from the public offering and listing
system in Argentina
   Determination of the price of the OPA in the case of a voluntary withdrawal from the public
offering and listing system in Argentina
  
    
    The equity value of the shares, taking into account a special financial statement
for the withdrawal from the public offering system and/or listing.
 
    
    The value of the company, in accordance with discounted cash flow criteria and/or
ratios applicable to comparable businesses or companies.
 
    
    The companys liquidation value.
 
    
    Average quotation prices on the stock exchange where the shares are listed during
the six month period immediately preceding the withdrawal application, no matter the
number of sessions necessary for such negotiation.
 
    
    The consideration offered beforehand, or the placement of the new shares, in the
event that a public offering has been made with regard to the same shares or if new_shares have been issued, if applicable, during the last year, to be counted as of the
date of the agreement for the withdrawal application.
  Form and transfer
  C. Material Contracts
   97




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##### Table of Contents



D. Exchange controls
 Exchange rates
   Exchange RatesHigh
    
    
    Low
    
    
    Average (1)
    
    
    Period-end2006
    
    
    3.1072
    
    
    
    3.0305
    
    
    
    3.0741
    
    
    
    3.06952007
    
    
    3.1797
    
    
    
    3.0553
    
    
    
    3.1156
    
    
    
    3.15102008
    
    
    3.4537
    
    
    
    3.0128
    
    
    
    3.1614
    
    
    
    3.45372009
    
    
    3.8545
    
    
    
    3.4497
    
    
    
    3.7301
    
    
    
    3.79672010
    
    
    3.9857
    
    
    
    3.7942
    
    
    
    3.9127
    
    
    
    3.9758November 2010
    
    
    3.9840
    
    
    
    3.9567
    
    
    
    3.9676
    
    
    
    3.9840December 2010
    
    
    3.9857
    
    
    
    3.9732
    
    
    
    3.9776
    
    
    
    3.9758January 2011
    
    
    4.0008
    
    
    
    3.9715
    
    
    
    3.9813
    
    
    
    4.0008February 2011
    
    
    4.0305
    
    
    
    4.0088
    
    
    
    4.0220
    
    
    
    4.0305March 2011
    
    
    4.0520
    
    
    
    4.0288
    
    
    
    4.0372
    
    
    
    4.0520April 2011
    
    
    4.0837
    
    
    
    4.0495
    
    
    
    4.0655
    
    
    
    4.0805
 Source:
    
    Central Bank(1)
    
    Based on daily closing price. Exchange controls
        98




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##### Table of Contents



E. Taxation
 Material U.S. federal income tax considerations relating to our Class B shares and ADSs
  
    
    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.
   Taxation of Dividends.
  99




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##### Table of Contents




    
    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;
      Taxation of Capital Gains.
   100




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##### Table of Contents



Passive Foreign Investment Companies.
        101




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##### Table of Contents



Information Reporting and Backup Withholding.
 Material Argentine tax considerations relating to our Class B shares and ADSs
    
    
    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, for a five-year period.
   102




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##### Table of Contents



F. Dividends and Paying Agents
  G. Statement by Experts
  H. Documents on Display
 http://www.sec.gov
   
    
    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
   103




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##### Table of Contents



Item 11.
    
    Quantitative and Qualitative Disclosure About Market Risk
 Market Risk
       2009
    
    
    2010Minimum
    
    
    39.8
    
    
    
    36.6Maximum
    
    
    67.2
    
    
    
    72.5Average
    
    
    56.8
    
    
    
    57.1December 31
    
    
    39.8
    
    
    
    55.9
   Currency risk for foreign exchange position
    
    2009
    
    
    2010Minimum
    
    
    18.2
    
    
    
    19.6Maximum
    
    
    37.0
    
    
    
    41.1Average
    
    
    29.3
    
    
    
    29.2December 31
    
    
    22.0
    
    
    
    19.7
 Market risk for securities position
    
    2009
    
    
    2010Minimum
    
    
    12.9
    
    
    
    12.9Maximum
    
    
    45.2
    
    
    
    44.0Average
    
    
    27.5
    
    
    
    27.9December 31
    
    
    17.8
    
    
    
    36.2
 Equity and Commodity Price Risk
  Interest Rate Risk
      104




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##### Table of Contents



2009
    
    
    2010Minimum
    
    
    198.3
    
    
    
    180.1Maximum
    
    
    261.2
    
    
    
    283.5Average
    
    
    227.8
    
    
    
    243.8December 31
    
    
    198.3
    
    
    
    283.5
  
 Item 12.
    
    Description of Securities Other Than Equity Securities
    D  American Depositary Shares
 Fees and Charges Applicable to ADS Holders
  Persons depositing or withdrawing shares may be request to pay:
    
    For:US$5.00 (or less) per 100 ADSs (or portion thereof)
    
         Issuance of ADSs, including issuances resulting
from a distribution of shares or rights or other
property
     Cancellation of ADSs for the purpose of
withdrawal, including if the deposit agreement
terminatesA fee equivalent to the fee that would be payable if securities
distributed had been shares and the shares had been deposited for
issuance of ADSs
US$02 (or less) per ADS (or portion thereof)
    
         Distribution of securities distributed to holders
of deposited securities which are distributed by
the depositary to ADS registered holders
     Any cash distribution to ADS registered holdersRegistration fees
    
         Registration of transfer of shares on our stock
registry to or from the name of the depositary or
its nominee or the custodian, or its nominee when
making deposits or withdrawalsExpenses of the depositary
    
          Cable, telex and facsimile transmissions     Conversion of foreign currencies into U.S. dollarsTaxes and other governmental charges the depositary or the
custodian, have to pay on any ADS or share underlying an ADS
    
         As necessaryAny charges incurred by the depositary or its agents, including 
the custodian, for servicing the deposited securities
    
         As necessary
 Fees and Direct and Indirect Payments Made by the Depositary to us
 Past Fees and Payments
  Future Fees and Payments
   105




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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; andc)
    
    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.
    Attestation Report of the Independent Registered Public Accounting Firm
   106




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
       
 
  Changes in Internal Control Over Financial Reporting
  
 Item 16A.
    
    Audit Committee Financial Expert
  
 Item 16B.
    
    Code of Ethics
 www.macro.com.ar
  107




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Item 16C.
    
    Principal Accountant Fees and Services
 Fees Paid to the Banks Principal Accountant
  Thousands of pesos
    
    2009
    
    
    2010Audit Fees
    
    
    9,380
    
    
    
    9,413Audit Related Fees
    
    
    240
    
    
    
    276Tax Fees
    
    
    
    
    
    
    All Other Fees
    
    
    
    
    
    
    51Total
    
    
    9,620
    
    
    
    9,740
 Audit Fees
  Audit-Related Fees
  Tax Fees
  All Other Fees
 .
 Audit Committees Pre-approval Policies and Procedures
  
 Item 16D.
    
    Exemptions from the Listing Standards for Audit Committees
  
 Item 16E.
    
    Purchases of Equity Securities by the Issuer and Affiliated Purchasers
  
 Item 16F.
    
    Change in Registrants Certifying Accountant
  
 Item 16G.
    
    Corporate Governance
     108




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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-This section establishes general
standards to determine directors independence.
    
    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)  No director qualifies as independent unless the
Board of Directors affirmatively determines that the director has no
material relationship with the listed company (either directly or as
a partner, shareholder or officer of an organization that has a
relationship with the company).The Board of Directors is
also required to identify which directors are independent and
disclose the basis for that determination.(b)  In addition, a director is not independent if:A.  the director is or has been within the last
three years, an employee, or an immediate family member is, or
has been within the last three years, an executive officer, of
the listed company, its parent or a consolidated subsidiary,
other than employment as interim chairman or CEO or other
executive officer;B.  the director has received, or has an immediate
family member who has received, during any twelve-month period
within the last three years, more than U.S.$120,000 in direct
compensation from the listed company, its parent or a
consolidated subsidiary, other than director and committee
fees and pension or other forms of deferred compensation for
prior services (provided such compensation is not contingent
in any way on continued service);C.   (i) the director is a current partner or
employee of a firm that is the listed companys internal or
external auditor; (ii) the director has an immediate family
member who is a current partner of such firm; (iii) the
director has an immediate family member who is a current
employee of such firm and personally works on the companys
audit; or (iv) the director or an immediate family member was
within the last three years a partner or employee of such firm
and personally worked on the companys audit within that time;D.  the director, or an immediate family member is,
or has been with the last three years, employed as an
executive officer of another company where any of the listed
companys present executive officers at the same time serves
or served on that companys compensation committee;
E.  the director is a current employee, or an
immediate family member is a current executive officer, of a
company that has made payments to, or received payments from
the listed company its parent or a consolidated subsidiary for
property or services in an amount which, in any of the last
three fiscal years, exceeds the greater of U.S.$1 million, or
2% of such other companys consolidated gross revenues.
There is a three-year look-back period before non-independent
directors can be considered independent.
Immediate family member includes a persons spouse, parents,
children, siblings, mothers and fathers-in-law, sons and
daughters-in-law, and anyone (other than domestic employees) who
share such persons home.
    
    (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;(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. Although our by-laws provide the
possibility to create a nominating/corporate governance committee, the Bank
does not have a nominating/corporate governance committee.Directors are nominated and appointed by the shareholders.
  109




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NYSE Corporate Governance Standards - Section 303.A
    
    Banco Macro Corporate Practices303A.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
independence requirements set out in Section 303A.02.(b)  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.  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.(c)  303A.07(c) provides that each listed company must
have an internal audit function to provide management and the audit
committee with ongoing assessments of the companys risk management
processes and system of internal control.
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.
    
    (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 May 7, 2010, 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;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 as set forth in the NYSE rules.
    
    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. Using
the CNV recommended code as basis, on June 3, 2009, our Board of Directors
approved a Code of Corporate Governance for the Bank.
  110




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NYSE Corporate Governance Standards - Section 303.A
    
    Banco Macro Corporate Practices303A.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.303A.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.(b)  Each listed company CEO must promptly notify the
NYSE in writing after any executive officer of the listed company
becomes aware of any 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 as and when required by
the interim written affirmation form specified by the NYSE.
    
    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.
 
 PART III
 
 Item 17.
    
    Financial Statements
  
 Item 18.
    
    Financial Statements
  
 Item 19.
    
    Exhibits
 EXHIBIT INDEX
 Exhibit
Number
    
    Description1.1
    
    
    Amended and Restated Bylaws of the Bank, as amended on April 21, 2009 is incorporated by reference to
the annual report on Form 20-f filed on June 1st, 2010 (File No. 001-32827).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 the
Bank on March 20, 2006 (File No. 333-130901).8
    
    
    See Note 4.1 to our audited consolidated 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  111




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SIGNATURE
  BANCO MACRO S.A.By:
    /s/ Jorge Horacio BritoName:
    Jorge Horacio BritoTitle:
    Chief Executive Officer   112




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CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE THREE YEARS ENDED DECEMBER 31, 2010,
TOGETHER WITH THE REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
  F - 1




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




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BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2010 AND 2009
 2010
    
    
    2009 (1)ASSETSCASHCash on hand
    
    
    1,406,971
    
    
    
    1,304,922Due from banks and correspondentsCentral Bank of Argentina
    
    
    3,089,851
    
    
    
    2,910,020Local Others
    
    
    17,446
    
    
    
    11,454Foreign
    
    
    687,487
    
    
    
    789,559Other
    
    
    249
    
    
    
    2375,202,004
    
    
    
    5,016,192GOVERNMENT AND PRIVATE SECURITIESHoldings in investment accounts
    
    
    
    
    
    
    659,371Holdings for trading or financial intermediation
    
    
    532,582
    
    
    
    464,851Government securities under repo transactions with
Central Bank or Argentina
    
    
    2,299,088
    
    
    
    1,046,220Unlisted government securities
    
    
    175,053
    
    
    
    79,449Instruments issued by the Central Bank of Argentina
    
    
    4,005,766
    
    
    
    4,650,421Investments in listed private securities
    
    
    17,588
    
    
    
    773Less: Allowances
    
    
    (3
    )
    
    
    (44
    )7,030,074
    
    
    
    6,901,041LOANSTo the non-financial government sector
    
    
    336,430
    
    
    
    206,484To the financial sectorInterbank financing
    
    
    110,100
    
    
    
    50,000Other financing to Argentine financial institutions
    
    
    45,100
    
    
    
    40,442Accrued interest, adjustments, foreign exchange and
quoted price differences receivables
    
    
    501
    
    
    
    474To the non-financial private sector and foreign residentsOverdrafts
    
    
    2,032,986
    
    
    
    1,436,292Documents
    
    
    1,805,226
    
    
    
    1,412,551Mortgage loans
    
    
    902,734
    
    
    
    746,762Pledged loans
    
    
    347,321
    
    
    
    262,508Personal loans
    
    
    5,802,442
    
    
    
    4,006,592Credit cards
    
    
    1,553,183
    
    
    
    950,098Other
    
    
    3,302,223
    
    
    
    2,271,756Accrued interest, adjustments, foreign exchange and
quoted price differences receivables
    
    
    216,888
    
    
    
    182,168Less: Unposted payments
    
    
    
    
    
    
    (29
    )Less: Unearned discount
    
    
    (30,121
    )
    
    
    (21,246
    )Less: Allowances
    
    
    (514,910
    )
    
    
    (448,045
    )15,910,103
    
    
    
    11,096,807
 (1)
    
    See Note 4.2. to the accompanying consolidated financial statements.  F - 3




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2010 AND 2009
 2010
    
    
    2009 (1)OTHER RECEIVABLES FROM FINANCIAL INTERMEDIATIONCentral Bank of Argentina
    
    
    2,545,880
    
    
    
    1,284,709Amounts receivable from spot and forward sales pending settlement
    
    
    248,714
    
    
    
    37,042Securities and foreign currency receivable from spot and forward
purchases pending settlement
    
    
    77,567
    
    
    
    536,560Unlisted corporate bonds
    
    
    279,306
    
    
    
    123,793Receivables from forward transactions without delivery of underlying asset
    
    
    2,840
    
    
    
    5,295Other receivables not covered by debtors classification standards
    
    
    642,223
    
    
    
    635,280Other receivables covered by debtors classification standards
    
    
    40,280
    
    
    
    41,835Less: Allowances
    
    
    (237,513
    )
    
    
    (231,219
    )3,599,297
    
    
    
    2,433,295RECEIVABLES FROM FINANCIAL LEASESReceivables from financial leases
    
    
    249,081
    
    
    
    271,470Accrued interest and adjustments
    
    
    4,339
    
    
    
    6,230Less: Allowances
    
    
    (6,021
    )
    
    
    (3,649
    )247,399
    
    
    
    274,051INVESTMENTS IN OTHER COMPANIESIn financial institutions
    
    
    557
    
    
    
    531Other
    
    
    10,789
    
    
    
    10,925Less: Allowances
    
    
    (1,676
    )
    
    
    (1,497
    )9,670
    
    
    
    9,959OTHER RECEIVABLESReceivables from sale of assets
    
    
    7,229
    
    
    
    12,231Minimum presumed income tax  Tax credit
    
    
    
    
    
    
    10,280Other
    
    
    605,691
    
    
    
    357,483Accrued interest and adjustments on receivables from sale of assets
    
    
    330
    
    
    
    481Other accrued interest and adjustments
    
    
    290
    
    
    
    Less: Allowances
    
    
    (16,529
    )
    
    
    (13,980
    )597,011
    
    
    
    366,495BANK PREMISES AND EQUIPMENT, NET
    
    
    445,531
    
    
    
    433,625OTHER ASSETS
    
    
    181,256
    
    
    
    114,342INTANGIBLE ASSETSGoodwill
    
    
    100,945
    
    
    
    55,045Organization and development costs, including Differences due to court
orders
    
    
    196,352
    
    
    
    155,529297,297
    
    
    
    210,574ITEMS PENDING ALLOCATION
    
    
    4,765
    
    
    
    2,857TOTAL ASSETS
    
    
    33,524,407
    
    
    
    26,859,238
 (1)
    
    See Note 4.2. to the accompanying consolidated 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, 2010 AND 2009
 2010
    
    
    2009 (1)LIABILITIESDEPOSITSFrom the non-financial government sector
    
    
    5,216,109
    
    
    
    3,613,924From the financial sector
    
    
    15,776
    
    
    
    14,052From the non-financial private sector and foreign residentsChecking accounts
    
    
    4,178,758
    
    
    
    3,275,826Savings accounts
    
    
    4,526,697
    
    
    
    3,445,577Time deposits
    
    
    8,714,101
    
    
    
    7,711,471Investment accounts
    
    
    178,010
    
    
    
    52,286Other
    
    
    518,807
    
    
    
    416,503Accrued interest, adjustments, foreign exchange and quoted
price differences payables
    
    
    59,135
    
    
    
    63,22723,407,393
    
    
    
    18,592,866OTHER LIABILITIES FROM FINANCIAL INTERMEDIATIONCentral Bank of Argentina  Other
    
    
    1,877
    
    
    
    1,897Banks and international institutions
    
    
    45,506
    
    
    
    219,743Non-subordinated Corporate Bonds
    
    
    620,071
    
    
    
    601,016Amounts payable for spot and forward purchases pending settlement
    
    
    93,609
    
    
    
    492,183Securities and foreign currency to be delivered under spot and
forward sales pending settlement
    
    
    2,561,740
    
    
    
    1,076,047Put options sold premiums
    
    
    398
    
    
    
    80Financing received from Argentine financial institutionsInterbank financing
    
    
    30,068
    
    
    
    145,000Other financing received from Argentine financial institutions
    
    
    17,278
    
    
    
    18,957Accrued interest payables
    
    
    25
    
    
    
    78Forward transactions amounts pending settlement without delivery
of underlying asset
    
    
    755
    
    
    
    Other
    
    
    1,173,873
    
    
    
    732,686Accrued interest, adjustments, foreign exchange and quoted price
differences payables
    
    
    46,083
    
    
    
    50,3834,591,283
    
    
    
    3,338,070OTHER LIABILITIESFees
    
    
    447
    
    
    
    624Other
    
    
    633,244
    
    
    
    883,458633,691
    
    
    
    884,082PROVISIONS
    
    
    105,830
    
    
    
    88,275SUBORDINATED CORPORATE BONDS
    
    
    598,470
    
    
    
    572,473ITEMS PENDING ALLOCATION
    
    
    7,399
    
    
    
    3,987MINORITY INTEREST IN SUBSIDIARIES
    
    
    27,499
    
    
    
    20,684TOTAL LIABILITIES
    
    
    29,371,565
    
    
    
    23,500,437SHAREHOLDERS EQUITY
    
    
    4,152,842
    
    
    
    3,358,801TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    
    33,524,407
    
    
    
    26,859,238
 (1)
    
    See Note 4.2. to the accompanying consolidated financial statements. 
  F - 5




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(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2010 AND 2009
 MEMORANDUM ACCOUNTS
 2010
    
    
    2009 (1)DEBIT-BALANCE ACCOUNTS
    
    
    15,219,447
    
    
    
    12,204,355Contingent
    
    
    5,542,009
    
    
    
    4,430,261Guarantees received
    
    
    5,197,200
    
    
    
    3,963,188Other not covered by debtors classification standards
    
    
    229
    
    
    
    359Contingent debit-balance contra accounts
    
    
    344,580
    
    
    
    466,714Control
    
    
    7,835,246
    
    
    
    6,152,834Receivables classified as irrecoverable
    
    
    845,119
    
    
    
    797,220Other
    
    
    6,745,666
    
    
    
    5,094,428Control debit-balance contra accounts
    
    
    244,461
    
    
    
    261,186Derivatives
    
    
    1,022,181
    
    
    
    1,033,601Notional value of put options taken
    
    
    
    
    
    
    25,229Notional value of forward transactions without delivery of underlying asset
    
    
    555,897
    
    
    
    461,234Interest rate swap
    
    
    157,066
    
    
    
    157,917Derivatives debit-balance contra accounts
    
    
    309,218
    
    
    
    389,221Trust activity
    
    
    820,011
    
    
    
    587,659Trust funds
    
    
    820,011
    
    
    
    587,659
 (1)
    
    See Note 4.2. to the accompanying consolidated financial statements.  F - 6




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2010 AND 2009
 MEMORANDUM ACCOUNTS
 2010
    
    
    2009 (1)CREDIT-BALANCE ACCOUNTS
    
    
    (15,219,447
    )
    
    
    (12,204,355
    )Contingent
    
    
    (5,542,009
    )
    
    
    (4,430,261
    )Credit lines granted (unused portion) covered by debtors classification
standards
    
    
    (57,533
    )
    
    
    Other guarantees provided covered by debtors classification standards
    
    
    (66,192
    )
    
    
    (85,213
    )Other guarantees provided not covered by debtors classification standards
    
    
    (130,684
    )
    
    
    (130,826
    )Other covered by debtors classification standards
    
    
    (90,171
    )
    
    
    (250,675
    )Contingent credit-balance contra accounts
    
    
    (5,197,429
    )
    
    
    (3,963,547
    )Control
    
    
    (7,835,246
    )
    
    
    (6,152,834
    )Checks to be credited
    
    
    (244,461
    )
    
    
    (261,186
    )Control credit-balance contra accounts
    
    
    (7,590,785
    )
    
    
    (5,891,648
    )Derivatives
    
    
    (1,022,181
    )
    
    
    (1,033,601
    )Notional value of call options sold
    
    
    (17,587
    )
    
    
    (32,905
    )Notional value of put options sold
    
    
    (54,780
    )
    
    
    (69,900
    )Notional value of forward transactions without delivery of underlying asset
    
    
    (236,851
    )
    
    
    (286,416
    )Derivatives credit-balance contra accounts
    
    
    (712,963
    )
    
    
    (644,380
    )Trust activity
    
    
    (820,011
    )
    
    
    (587,659
    )Trust activity credit-balance contra accounts
    
    
    (820,011
    )
    
    
    (587,659
    )
 (1)
    
    See Note 4.2. to the accompanying consolidated financial statements. 
  F - 7




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008
 2010
    
    
    2009 (1)
    
    
    2008 (1)FINANCIAL INCOMEInterest on cash and due from banks
    
    
    275
    
    
    
    363
    
    
    
    7,010Interest on loans to the financial sector
    
    
    13,668
    
    
    
    7,491
    
    
    
    15,584Interest on overdrafts
    
    
    278,851
    
    
    
    340,275
    
    
    
    357,215Interest on documents
    
    
    146,321
    
    
    
    195,069
    
    
    
    184,852Interest on mortgage loans
    
    
    112,498
    
    
    
    104,016
    
    
    
    97,057Interest on pledged loans
    
    
    51,258
    
    
    
    55,081
    
    
    
    64,499Interest on credit card loans
    
    
    210,058
    
    
    
    183,369
    
    
    
    117,952Interest on financial leases
    
    
    42,991
    
    
    
    49,433
    
    
    
    73,481Interest on other loans
    
    
    1,538,828
    
    
    
    1,243,788
    
    
    
    1,032,837Interest on other receivables from financial intermediation
    
    
    966
    
    
    
    74
    
    
    
    14,416Income from government and private securities, net
    
    
    988,707
    
    
    
    1,370,981
    
    
    
    641,299Income from guaranteed loans  Presidential Decree No. 1,387/01
    
    
    62,053
    
    
    
    7,232
    
    
    
    37,043Net income from options
    
    
    616
    
    
    
    
    
    
    
    261CER (Benchmark Stabilization Coefficient) adjustment
    
    
    46,176
    
    
    
    18,652
    
    
    
    70,477CVS (Salary Variation Coefficient) adjustment
    
    
    688
    
    
    
    728
    
    
    
    818Difference in quoted prices of gold and foreign currency
    
    
    160,209
    
    
    
    133,731
    
    
    
    143,094Other
    
    
    74,275
    
    
    
    150,169
    
    
    
    171,9653,728,438
    
    
    
    3,860,452
    
    
    
    3,029,860FINANCIAL EXPENSEInterest on checking accounts
    
    
    4,073
    
    
    
    16,423
    
    
    
    17,708Interest on savings accounts
    
    
    19,639
    
    
    
    17,094
    
    
    
    14,534Interest on time deposits
    
    
    954,465
    
    
    
    1,146,013
    
    
    
    933,881Interest on interfinancing received loans (received call)
    
    
    4,444
    
    
    
    2,679
    
    
    
    3,909Interest on other financing from financial institutions
    
    
    6
    
    
    
    62
    
    
    
    28Interest on other liabilities from financial intermediation
    
    
    62,889
    
    
    
    81,510
    
    
    
    91,083Interest on subordinated bonds
    
    
    57,381
    
    
    
    54,874
    
    
    
    47,523Other interest
    
    
    1,961
    
    
    
    2,692
    
    
    
    8,762Net expense from options
    
    
    
    
    
    
    1
    
    
    
    CER adjustment
    
    
    4,890
    
    
    
    4,341
    
    
    
    32,946Contribution to Deposit Guarantee Fund
    
    
    35,151
    
    
    
    30,038
    
    
    
    25,945Other
    
    
    185,271
    
    
    
    155,880
    
    
    
    165,7431,330,170
    
    
    
    1,511,607
    
    
    
    1,342,062GROSS INTERMEDIATION MARGIN  GAIN
    
    
    2,398,268
    
    
    
    2,348,845
    
    
    
    1,687,798PROVISION FOR LOAN LOSSES
    
    
    215,040
    
    
    
    197,512
    
    
    
    297,606SERVICE-CHARGE INCOMERelated to lending transactions
    
    
    96,574
    
    
    
    60,741
    
    
    
    63,669Related to deposits
    
    
    816,100
    
    
    
    669,564
    
    
    
    587,259Other commissions
    
    
    31,084
    
    
    
    29,136
    
    
    
    23,695Other
    
    
    380,783
    
    
    
    290,834
    
    
    
    217,0771,324,541
    
    
    
    1,050,275
    
    
    
    891,700
 (1)
    
    See Note 4.2. to the accompanying consolidated financial statements.  F - 8




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008
 2010
    
    
    2009 (1)
    
    
    2008 (1)SERVICE-CHARGE EXPENSECommissions
    
    
    80,233
    
    
    
    59,216
    
    
    
    54,215Other
    
    
    205,132
    
    
    
    167,383
    
    
    
    118,186285,365
    
    
    
    226,599
    
    
    
    172,401ADMINISTRATIVE EXPENSESPersonnel expenses
    
    
    1,233,898
    
    
    
    966,963
    
    
    
    798,236Directors and statutory auditors fees
    
    
    59,391
    
    
    
    36,413
    
    
    
    26,941Other professional fees
    
    
    81,169
    
    
    
    65,533
    
    
    
    55,012Advertising and publicity
    
    
    63,437
    
    
    
    46,861
    
    
    
    53,178Taxes
    
    
    102,547
    
    
    
    79,784
    
    
    
    70,994Depreciation of equipment
    
    
    58,285
    
    
    
    53,993
    
    
    
    50,543Amortization of organization costs
    
    
    43,273
    
    
    
    33,317
    
    
    
    25,557Other operating expenses
    
    
    248,430
    
    
    
    216,128
    
    
    
    170,926Other
    
    
    26,884
    
    
    
    23,428
    
    
    
    18,6151,917,314
    
    
    
    1,522,420
    
    
    
    1,270,002NET INCOME FROM FINANCIAL INTERMEDIATION
    
    
    1,305,090
    
    
    
    1,452,589
    
    
    
    839,489OTHER INCOMEIncome from long-term investments
    
    
    6,168
    
    
    
    7,618
    
    
    
    25,847Penalty interest
    
    
    26,775
    
    
    
    23,884
    
    
    
    14,982Recovered loans and allowances reversed
    
    
    69,981
    
    
    
    46,921
    
    
    
    94,490CER adjustment
    
    
    107
    
    
    
    74
    
    
    
    95Other
    
    
    64,492
    
    
    
    43,480
    
    
    
    53,036167,523
    
    
    
    121,977
    
    
    
    188,450OTHER EXPENSEPenalty interest and charges payable to the Central Bank of Argentina
    
    
    20
    
    
    
    20
    
    
    
    181Charge for other receivables uncollectibility and other allowances
    
    
    32,517
    
    
    
    21,275
    
    
    
    37,242Amortization of differences from deposits dollarization
    
    
    17,475
    
    
    
    20,633
    
    
    
    29,509Depreciation and loss of other assets
    
    
    3,662
    
    
    
    6,847
    
    
    
    2,151Goodwill amortization
    
    
    10,305
    
    
    
    8,432
    
    
    
    8,439Other
    
    
    25,561
    
    
    
    101,087
    
    
    
    25,80689,540
    
    
    
    158,294
    
    
    
    103,328MINORITY INTEREST IN SUBSIDIARIES
    
    
    (6,868
    )
    
    
    (5,092
    )
    
    
    (3,354
    )INCOME BEFORE INCOME TAX
    
    
    1,376,205
    
    
    
    1,411,180
    
    
    
    921,257INCOME TAX
    
    
    365,775
    
    
    
    659,250
    
    
    
    261,207NET INCOME FOR THE FISCAL YEAR
    
    
    1,010,430
    
    
    
    751,930
    
    
    
    660,050NET INCOME PER SHARE (2)  stated in pesos
    
    
    1.70
    
    
    
    1.26
    
    
    
    1.00
 (1)
    
    See Note 4.2. to the accompanying consolidated financial statements.(2)
    
    See Note 9. to the accompanying consolidated financial statements. 
  F - 9




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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, 2010, 2009 AND 2008
 Adjustments
    
    
    Earnings reservedCapital
    
    
    Stock
    
    
    to
    
    
    
    
    
    
    Specialstock
    
    
    issuance
    
    
    Shareholders
    
    
    
    
    
    
    Corporate
    
    
    
    
    
    
    UnappropriatedChanges
    
    (1)
    
    
    premium
    
    
    equity
    
    
    Legal
    
    
    Bonds
    
    
    Voluntary
    
    
    earnings (1)
    
    
    TotalBalances as of December 31, 2007
    
    
    685,127
    
    
    
    398,750
    
    
    
    4,511
    
    
    
    382,705
    
    
    
    
    
    
    
    211
    
    
    
    1,241,716
    
    
    
    2,713,020Distribution 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 (4)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (380,164
    )
    
    
    (380,164
    )Net income for the fiscal year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    660,050
    
    
    
    660,050Balances as of December 31, 2008
    
    
    685,127
    
    
    
    398,750
    
    
    
    4,511
    
    
    
    481,743
    
    
    
    
    
    
    
    211
    
    
    
    1,251,569
    
    
    
    2,821,911Own shares reacquired (4)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (56,665
    )
    
    
    (56,665
    )Capital Stock decrease approved
by the Shareholders Meeting of
April 21, 2009 (4)
    
    
    (60,000
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    60,000Capital stock decrease approved
by the Shareholders meeting of
September 10, 2009 (4)
    
    
    (30,642
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,642Distribution of
unappropriated earnings, as
approved by the Shareholders
Meeting held on May, 12,2009:- Legal reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    132,010
    
    
    
    
    
    
    
    
    
    
    
    (132,010
    )- Cash dividends (2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (148,335
    )
    
    
    (148,335
    )- Special reserve  Corporate
Bonds (3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    50,510
    
    
    
    
    
    
    
    (50,510
    )- Tax on Personal Assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (10,040
    )
    
    
    (10,040
    )Reversal of Special Reserve -
Corporate Bonds (3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (50,510
    )
    
    
    
    
    
    
    50,510Net income for the fiscal year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    751,930
    
    
    
    751,930Balances as of December 31, 2009
    
    
    594,485
    
    
    
    398,750
    
    
    
    4,511
    
    
    
    613,753
    
    
    
    
    
    
    
    211
    
    
    
    1,747,091
    
    
    
    3,358,801
  F - 10




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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, 2010, 2009 AND 2008
 Adjustments
    
    
    Earnings reservedCapital
    
    
    Stock
    
    
    to
    
    
    
    
    
    
    Specialstock
    
    
    issuance
    
    
    shareholders
    
    
    
    
    
    
    Corporate
    
    
    
    
    
    
    UnappropriatedChanges
    
    (1)
    
    
    premium
    
    
    equity
    
    
    Legal
    
    
    Bonds
    
    
    Voluntary
    
    
    earnings (1)
    
    
    TotalDistribution of unappropriated
earnings, as approved by the
Shareholders Meeting held on
April, 6,2010:- Legal reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    150,387
    
    
    
    
    
    
    
    
    
    
    
    (150,387
    )- Cash dividends (2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (208,070
    )
    
    
    (208,070
    )- Special reserve  Corporate
Bonds (3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    55,527
    
    
    
    
    
    
    
    (55,527
    )- Tax on Personal Assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8,319
    )
    
    
    (8,319
    )Reversal of Special Reserve
- Corporate Bonds (3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (55,527
    )
    
    
    
    
    
    
    55,527Net income for the fiscal year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,010,430
    
    
    
    1,010,430Balances as of December 31, 2010
    
    
    594,485
    
    
    
    398,750
    
    
    
    4,511
    
    
    
    764,140
    
    
    
    
    
    
    
    211
    
    
    
    2,390,745
    
    
    
    4,152,842
 (1)
    
    Includes the retroactive accounting effects of legal merger of Nuevo Banco Bisel S.A.
mentioned in Note 3.6. The legal capital structure is described in Note 9. to the accompanying
consolidated financial statements. See Notes 3.6 and 4.2 to the accompanying consolidated
financial statements.(2)
    
    Through resolutions of April 11, 2008, September 4, 2009 and May 28, 2010,
respectively, the Central Bank authorized the above mentioned cash dividends distribution.(3)
    
    See Note 10. to the accompanying consolidated financial statements(4)
    
    See Notes 4.4.q.2) and 9. to the accompanying consolidated financial statements 
  F - 11




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008
 2010
    
    
    2009 (1)
    
    
    2008 (1)Changes in cash and cash equivalentsCash and cash equivalents at beginning of fiscal year
    
    
    5,396,063
    
    
    
    3,523,897
    
    
    
    3,117,426Cash and cash equivalents at end of fiscal year
    
    
    5,990,480
    
    
    
    5,396,063
    
    
    
    3,523,897Net increase in cash and cash equivalents
    
    
    594,417
    
    
    
    1,872,166
    
    
    
    406,471Causes of changes in cash and cash equivalentsOperating activitiesNet collections / (payments):- Government and private securities
    
    
    3,131,177
    
    
    
    (516,662
    )
    
    
    80,038- Loans- to the financial sector
    
    
    (51,069
    )
    
    
    (2,801
    )
    
    
    95,190- to the non-financial government sector
    
    
    (24,793
    )
    
    
    58,098
    
    
    
    66,026- to the non-financial private sector and foreign residents
    
    
    (2,224,016
    )
    
    
    1,630,838
    
    
    
    236,273- Other receivables from financial intermediation
    
    
    (1,769,683
    )
    
    
    (228,120
    )
    
    
    (53,947
    )- Receivables from financial leases
    
    
    67,018
    
    
    
    170,624
    
    
    
    85,202- Deposits- from the financial sector
    
    
    1,725
    
    
    
    (8,386
    )
    
    
    10,705- from the non-financial government sector
    
    
    1,531,907
    
    
    
    (532,281
    )
    
    
    1,981,008- from the non-financial private sector and foreign residents
    
    
    2,011,260
    
    
    
    2,083,281
    
    
    
    (668,310
    )- Other liabilities from financial intermediation- financing facilities from the financial sector (received calls)
    
    
    (119,490
    )
    
    
    117,083
    
    
    
    (866
    )- others (except liabilities included under financing activities)
    
    
    188,107
    
    
    
    475,800
    
    
    
    (91,712
    )Collections related to service-change income
    
    
    1,312,098
    
    
    
    1,043,723
    
    
    
    882,354Payments related to service-charge expenses
    
    
    (278,375
    )
    
    
    (220,860
    )
    
    
    (168,091
    )Administrative expenses paid
    
    
    (1,780,237
    )
    
    
    (1,405,088
    )
    
    
    (1,120,663
    )Payments of organization and development expenses
    
    
    (79,155
    )
    
    
    (44,144
    )
    
    
    (45,258
    )Net collections from penalty interest
    
    
    26,756
    
    
    
    23,874
    
    
    
    14,801Differences from payments related to court orders
    
    
    (20,570
    )
    
    
    (30,327
    )
    
    
    (16,733
    )Collections of dividends from other companies
    
    
    6,369
    
    
    
    6,397
    
    
    
    26,939Other collections/(payments) related to other income and losses
    
    
    64,149
    
    
    
    (25,351
    )
    
    
    (12,831
    )Net (payments) / collections from other operating activities
    
    
    (115,183
    )
    
    
    (38,934
    )
    
    
    6,636Payment of income tax / minimum presumed income tax
    
    
    (726,269
    )
    
    
    (350,396
    )
    
    
    (81,967
    )Net cash flows generated in operating activities
    
    
    1,151,726
    
    
    
    2,206,368
    
    
    
    1,224,794Investing activitiesNet payments for bank premises and equipment
    
    
    (57,434
    )
    
    
    (34,329
    )
    
    
    (72,819
    )Net (payments) / collections for other assets
    
    
    (69,191
    )
    
    
    (1,080
    )
    
    
    23,731Payments from purchases of investments in other companies
    
    
    (91,857
    )
    
    
    
    
    
    
    (635
    )Collections from sales of investments in other companies
    
    
    
    
    
    
    150
    
    
    
    922Other collections/(payments) for investing activities
    
    
    12,077
    
    
    
    (8,138
    )
    
    
    5,032Net cash flows used in investing activities
    
    
    (206,405
    )
    
    
    (43,397
    )
    
    
    (43,769
    )Financing activitiesNet (payments) / collections:- Non-subordinated corporate bonds
    
    
    (56,372
    )
    
    
    (108,424
    )
    
    
    (133,211
    )- Central Bank of Argentina- Other
    
    
    (19
    )
    
    
    (76,814
    )
    
    
    (79,206
    )- Banks and International Institutions
    
    
    (176,042
    )
    
    
    (22,318
    )
    
    
    47,204- Subordinated corporate bonds
    
    
    (58,827
    )
    
    
    (56,225
    )
    
    
    (18,397
    )- Financing received from Argentine financial institutions
    
    
    (1,685
    )
    
    
    (5,171
    )
    
    
    (63,489
    )Payment of dividends
    
    
    (208,124
    )
    
    
    (148,350
    )
    
    
    (171,004
    )Other payments from financing activities- Own shares reacquired
    
    
    
    
    
    
    (56,665
    )
    
    
    (380,164
    )Net cash flows used in financing activities
    
    
    (501,069
    )
    
    
    (473,967
    )
    
    
    (798,267
    )Financial income and holding gains on cash and cash equivalents
    
    
    150,165
    
    
    
    183,162
    
    
    
    23,713Net increase in cash and cash equivalents
    
    
    594,417
    
    
    
    1,872,166
    
    
    
    406,471
 (1)
    
    See Note 4.2. to the accompanying consolidated financial statements. 
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 AS OF DECEMBER 31, 2010 AND 2009
 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
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BANCO MACRO S.A. AND SUBSIDIARIES
 Legal actions
       3.
    
    BANK OPERATIONS
 3.1.
    
    Agreement with the Misiones Provincial Government
    3.2.
    
    Agreement with the Salta Provincial Government
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BANCO MACRO S.A. AND SUBSIDIARIES
 3.3.
    
    Agreement with the Jujuy Provincial Government
    3.4.
    
    Agreements with Tucumán Provincial and Municipal Governments
    3.5.
    
    Uniones Transitorias de Empresas (joint ventures)
 a)
    
    Banco Macro S.A.  Siemens Itron Business Services S.A.
  b)
    
    Banco Macro Bansud S.A.  Montamat & Asociados S.R.L.
  c)
    
    Banco Macro S.A.  Gestiva S.A.
    3.6.
    
    Legal merger of Nuevo Banco Bisel S.A.On March 19, 2009, the Boards of Directors of Banco Macro S.A. and Nuevo Banco Bisel S.A.
entered into a Preliminary merger agreement, which established the incorporation of the
latter to Banco Macro S.A. retroactively as from January 1, 2009, on the basis of the
financial statements of such banks as of December 31, 2008 (see also Notes 4.2. and
7.1.e)).
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BANCO MACRO S.A. AND SUBSIDIARIES
 On May 27, 2009, the General Regular and Special Shareholders Meetings of Banco Macro
S.A. and Nuevo Banco Bisel S.A., respectively, approved such preliminary merger agreement,
as well as the consolidated special balance sheet for merger purposes as of December 31,
2008, and the exchange ratio. Furthermore, Banco Macro S.A.s Shareholders Meeting,
mentioned above, approved the capital stock increase through the issuance of 1,147,887
common registered Class B shares with a face value of Ps. 1, each entitled to one vote, to
be delivered to the minority shareholders of the absorbed bank (Sud Inversiones & Análisis
S.A. and Macro Securities S.A. Sociedades de Bolsa).Subsequently, the BCBA, the Central Bank and the CNV (Argentine securities commission),
authorized the abovementioned merger, which was registered with the IGJ (Business
Associations Regulatory Agency). Additionally, the CNV and the BCBA authorized the public
offering of shares to be delivered to the minority shareholders of former Nuevo Banco
Bisel S.A.Finally, on August 18, 2009, the Central Bank reported Nuevo Banco Bisel S.A.s merger
with and into Banco Macro S.A.In September 2009, the shares issued were accredited to the minority shareholders of the
bank merged with and into the Bank. Additionally, during October 2009, Sud Inversiones &
Análisis S.A. and Macro Securities S.A. Sociedad de Bolsa sold those shares to unrelated
parties.Under Central Bank rules, the accounting of the merger did not have a significant impact
on the consolidated financial statements of the Bank.3.7.
    
    Banco Privado de Inversiones S.AOn March 30, 2010, the Bank entered into an agreement to purchase 100% of the shares of
Banco Privado de Inversiones S.A.On September 9, 2010, the Central Bank issued Resolution 198/2010 whereby it stated that
there are no objections for Banco Macro S.A. to acquire 100% of Banco Privado de
Inversiones S.A. capital stock and to transfer 1% thereof to Sud Inversiones y Análisis
S.A. and 1% to Macro Securities S.A. Sociedad de Bolsa.On September 20, 2010, 100% of the capital stock of Banco Privado de Inversiones S.A. was
transferred to the Bank, which paid USD 23.3 million, out of which, USD 10.4 million is
related to an escrowed amount, as provided in the purchase agreement mentioned above.As of such date, Banco Privado de Inversiones S.As assets and liabilities amounted to
403,686 and 368,034, respectively; consequently, shareholders equity amounted to 35,652.
Therefore, the Bank booked a positive goodwill amounting to 56,205, which arises from the
difference between the total price of the transaction and Banco Privado de Inversiones
S.A.s shareholders equity as of such date, which will be amortized in ten years pursuant
to Central Bank rules.On September 22, 2010, the Bank made an irrevocable capital contribution of 50,000 to
Banco Privado de Inversiones S.A. as provided in Resolution No. 443 of the SEFyC
(Financial Institutions and Foreign Exchange Regulatory Agency) dated September 15, 2010.At the date of issuance of these consolidated financial statements, the National
Commission of Competition Defense has not issued an authorization in this respect.On December 20, 2010, Banco Macro S.A. sold 366,590 of Banco Privado de Inversiones S.A.
common shares to Sud Inversiones y Análisis S.A. and another 366,590 to Macro Securities
S.A. Sociedad de Bolsa for a total amount of 740. Consequently, as of December 31, 2010,
Banco Macro S.A. holds 98% of Banco Privado de Inversiones S.A.s capital stock.
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BANCO MACRO S.A. AND SUBSIDIARIES
 4.
    
    SIGNIFICANT ACCOUNTING POLICIES
   4.1.
    
    Consolidation and basis of presentation
    Equity Investment amountsShares
    
    
    Percentage held of
    
    
    as ofCapital
    
    
    
    
    
    
    December 31,
    
    
    December 31,Company
    
    Class
    
    
    Number
    
    
    Stock
    
    
    Votes
    
    
    2010
    
    
    2009Banco del Tucumán S.A.
    
    Common
    
    
    395,341
    
    
    
    89.932
    %
    
    
    89.932
    %
    
    
    243,810
    
    
    
    182,755Banco Privado de Inversiones S.A. (a)
    
    Common
    
    
    35,925,820
    
    
    
    99.985
    %
    
    
    99.985
    %
    
    
    84,454
    
    
    
    Macro Bank Limited (b)
    
    Common
    
    
    9,816,899
    
    
    
    99.999
    %
    
    
    99.999
    %
    
    
    184,060
    
    
    
    164,576Macro Securities S.A. Sociedad de
Bolsa (c) y (d)
    
    Common
    
    
    12,776,680
    
    
    
    99.921
    %
    
    
    99.921
    %
    
    
    26,914
    
    
    
    28,374Sud Inversiones & Análisis S.A.
    
    Common
    
    
    6,475,143
    
    
    
    98.605
    %
    
    
    98.605
    %
    
    
    13,155
    
    
    
    14,509Macro Fondos SGFCI S.A.
    
    Common
    
    
    327,183
    
    
    
    99.936
    %
    
    
    99.936
    %
    
    
    1,765
    
    
    
    1,503
 (a)
    
    Banco Macro S.A.s indirect equity interest derives from Sud Inversiones y
Análisis S.A. and Macro Securities S.A. Sociedad de Bolsa.(b)
    
    Consolidated with Sud Asesores (ROU) S.A. (voting rights: 100%, equity
interest: 1,038).(c)
    
    Consolidated with Macro Fondos SGFCI S.A.(d)
    
    The indirect equity interest of Banco Macro S.A comes from Sud Inversiones &
Análisis S.A.Intercompany
transactions were eliminated in the consolidation process.Furthermore, the financial statements of Macro Bank Limited (consolidated with Sud Asesores
(ROU) S.A.) were conformed to the Central Bank rules. Also, as they are originally stated
in US dollars, they were translated into pesos following the
procedures indicated below:(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, 2010 and 2009.  F - 17




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BANCO MACRO S.A. AND SUBSIDIARIES
 (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 income were translated into pesos, as described in (a) above.
The 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. 4.2.
    
    Comparative informationThe consolidated financial statements as of December 31, 2010, are presented comparatively
with those of December 31, 2009 and 2008.By means of Communiqués A 5,047, A 5,094 as supplemented, the Central Bank introduced
amendments to the valuation and disclosure methods applicable to financial leases and to
the disclosure methods for holdings of government securities issued in Argentine pesos,
resulting from reverse repurchase agreements executed with the Central Bank, respectively.
As a result, certain accounts and items on the balance sheet, the statements of income,
changes in shareholders equity and cash flows as of December 31, 2010, as well as certain
supplementary information, were reclassified due to the application of such communiqués and
had no impact whatsoever on shareholders equity or income (loss) in prior years.Additionally, and mainly as a result of the legal merger of Nuevo Banco Bisel S.A.
described in Note 3.6., the Bank made certain reclassifications in the consolidated
financial statements as of December 31, 2008, so as to make them comparable with the
current consolidated financial statements.4.3.
    
    Restatement into constant pesosProfessional accounting standards in Argentina establish that the financial statements
should be stated in constant pesos. In a monetary stability context, the nominal currency
is used as constant currency; however, during inflationary or deflationary periods,
financial statements are required to be stated in constant currency as of the latest
balance sheet date, recognizing the variations in the domestic wholesale price index
(domestic WPI) published by the INDEC (Argentine Institute of Statistics and Censuses), in
conformity with the restatement method under FACPCE Technical Resolution No. 6.The Banks consolidated financial statements reflect the changes in the peso purchasing
power through February 28, 2003, under Presidential Decree No. 664/03, IGJ General
Resolution No. 4/2003, CNV General Resolution No. 441, and Central Bank Communiqué A
3,921. Professional accounting standards provide that the restatement method established
by Technical Resolution No. 6 should have been discontinued as from October 1, 2003.Before February 28, 2003, the financial statements were restated in constant currency on a
monthly basis, using INDECs domestic WPI measurements. The restatement coefficient for a
given month resulted from dividing the index value at the end of the month by the value at
the beginning. The procedure is as follows:
 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 methodsThe main valuation methods used to prepare these consolidated financial statements as of
December 31, 2010, and 2009, were:
 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 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 government securities  Holdings in special investment
accounts:As of December 31, 2009, in accordance with the provisions of Central Bank
Communiqués A 4,676 and 4,861, as supplemented, the Bank chose to classify
certain holdings as Special investment accounts. Those holdings were valued at
the acquisition cost defined in such communiqués, increased by the accrual of the
internal rate of return as from the date of inclusion in this classification.Additionally, when the market value of these holdings was lower than the value
defined above, the accrual of the internal rate of return was recorded in an offset
account until the book value equals the market value.b.2)
    
    Listed government securities  Holdings for trading or intermediation
transactions and repurchase agreements: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.3)
    
    Unlisted government securities:As of December 31, 2010, and 2009, as set forth in Central Bank Communiqué A
4,898, as supplemented, the holdings of government securities without volatility
(active market in accordance with Central Bank rules) and included in the list of
current securities disseminated by Central Bank were valued at the higher of the
present value disseminated by Central Bank and the book value of the prior month.When the present value of these holdings is lower than their book value, the
accrual of interest will be recorded in an offset account created to such end until
the book value equals the present value.b.4)
    
    Listed instruments issued by the Central Bank:Holdings in the proprietary portfolio and those received from repurchase agreements
were valued according to the effective quoted market value for each instrument on
the last business day of each year. Differences in quoted market values were
recorded in the statement of income for each year.
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BANCO MACRO S.A. AND SUBSIDIARIES
 b.5)
    
    Unlisted instruments issued by the Central Bank:As provided in Central Bank Communiqué A 4,414, as supplemented, the holdings in
the proprietary portfolio and those received from repurchase agreements, were
valued at acquisition cost plus interest accrued as of each year-end, exponentially
applying the internal rate of return as per their issue terms and conditions. The
accruals of the internal rate of return mentioned above were charged to income for
each year.
 c)
    
    Guaranteed loans  Presidential Decree No. 1,387/01:As of December 31, 2010, and 2009, as set forth in Central Bank Communiqué A 4,898, as
supplemented, the guaranteed loans issued by the Argentine Government under Presidential
Decree No. 1387/2001 were valued at the higher of the present value disseminated by
Central Bank and the book value of the prior month (net of the offset account and
services collected).When the present value of these holdings is lower than their book value, the accrual of
interest will be recorded in an offset account created to such end until the book value
equals the present value.In addition, in 2009, the Bank entered into exchange agreements whereby it exchanged the
guaranteed loans for a book value of 296,893 and received Argentina bonds (Bonar) at the
Badlar interest rate + 275 basis points, in Argentine pesos maturing in 2014 for the
same amount. These transactions did not have any effects in the income statement.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 special investment accounts and unlisted government
securities: as explained in Note 4.4.b.1) and 4.4.b.3), respectively.e.2)
    
    Guaranteed loans: as explained in Note 4.4.c).e.3)
    
    Deposits and other assets and liabilities: they were adjusted by CER as of the last business day of each year.
 f)
    
    Allowance for loan losses and provision for granted guarantees: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 recorded 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 granted guarantees 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 each year.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.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: they were valued as provided by Central Bank
Communiqué A 4,414, at their cost value increased exponentially by their
internal rate of return.
 h.3)
    
    Securities to be received for repurchase agreement and to be delivered
for reverse repurchase agreement:
 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: they were valued as provided by Central Bank Communiqué A
4,414, at their cost value increased exponentially by their internal rate of
return.
 h.4)
    
    Debt securities and certificates of participation in financial trusts:
 i)
    
    Debt securities: they were valued as provided by Central Bank
Communiqué A 4,414, at their cost value increased exponentially by their
internal rate of return, translated into pesos pursuant to the method
described in Note 4.4.a), as the case may be.
 ii)
    
    Certificates of participation in the Fideicomiso Financiero
Suquía and Fideicomiso Financiero Bisel financial trust: they were valued
based on the cost of shareholders equity of former Nuevo Banco Suquía S.A.
and former Nuevo Banco Bisel S.A., respectively, plus interest accrued, net of
redemptions. As of December 31, 2010, and 2009, an allowance was booked for
the full amounts receivable booked on account of such certificates, as they
were deemed unrecoverable.
 iii)
    
    Other certificates of participation: they were stated at
amortized cost value increased, as the case may be, by interest accrued until
the last business day of each year, translated into pesos according to the
method described in Note 4.4.a), as the case may be.
  h.5)
    
    Unlisted corporate bonds purchased:They were valued by the accrual method based on their internal rate of return, as
provided by Central Bank Communiqué A 4,414 and supplementary regulations.
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BANCO MACRO S.A. AND SUBSIDIARIES
 h.6)
    
    Non-subordinated corporate bonds issued:They were valued at the amount due for principal and interest accrued as of each
year-end, translated into pesos pursuant to the method described in Note 4.4.a), as
the case may be.
 i)
    
    Receivables from financial leases:They were valued at the net investment in the lease less unearned income and calculate
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 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, translated 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 based on their estimated useful life using
the straight line method.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 useful life.
 l.2)
    
    Differences due to court orders (amparos)  Not included for the
determination of the computable equity: 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 (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.In addition, 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.
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BANCO MACRO S.A. AND SUBSIDIARIES
 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 / charge a variable
rate and charge / pay 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 of each year.m.4)
    
    Put options purchased / call options sold: 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 when it is probable that future costs will be incurred and
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,
translated 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)
    
    The purchase cost of own shares reaquired was debited to the
Unappropriated earnings account. Furthermore, the face value of such shares was
reclassified from Outstanding shares to Shares in treasury. The decrease in own
shares reacquired as a result of the capital decrease was credited against
unappropriated retained earnings (see also Note 9).
 r)
    
    Consolidated Statement of income accounts:
 r.1)
    
    Accounts reflecting monetary transactions occurred in the fiscal years
ended December 31, 2010, 2009 and 2008 (financial income and expenses,
service-charge income and service-charge expenses, provision for loan losses,
administrative expenses, etc.), were computed at their historical amounts on a
monthly accrual basis.
 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.
  F - 23




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 s)
    
    Statement of cash flows:
 The Bank considers cash and cash equivalents to include the following accounts: Cash and
Government and private securities which mature less than 90 days as from their date of
acquisition. Below is a breakdown of the reconciliation of the Cash and cash
equivalent item on the Statement of cash flows with the related balance sheet accounts
as of December 31, 2010, 2009 and 2008:
 2010
    
    
    2009
    
    
    2008Cash
    
    
    5,202,004
    
    
    
    5,016,192
    
    
    
    3,523,897Government and private securitiesHoldings for trading or financial intermediation
    
    
    198,790
    
    
    
    379,871
    
    
    
    Instruments issued by Central Bank of Argentina
    
    
    589,686
    
    
    
    
    
    
    
    Cash and cash equivalents
    
    
    5,990,480
    
    
    
    5,396,063
    
    
    
    3,523,897
 5.
    
    INCOME TAX AND MINIMUM PRESUMED INCOME TAX (TOMPI)
      6.
    
    DIFFERENCES BETWEEN CENTRAL BANK RULES AND PROFESSIONAL ACCOUNTING STANDARDS EFFECTIVE IN
ARGENTINA
    F - 24




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 6.1.
    
    Valuation standards
 Adjustments under professionalaccounting standards to equityItem
    
    2010
    
    
    2009
    
    
    2008Government securities and assistance to the government
sector (a)Holdings in special investment accounts
    
    
    
    
    
    
    237,913
    
    
    
    (31,557
    )Holdings of unlisted government securities
    
    
    17,279
    
    
    
    9,160
    
    
    
    (21,639
    )Unlisted instruments issued by the Central Bank
    
    
    (18,427
    )
    
    
    (2,392
    )
    
    
    (33,776
    )Guaranteed loans  Presidential Decree No. 1,387/01
    
    
    (14,806
    )
    
    
    8,805
    
    
    
    (259,617
    )Business combinations (b)Acquisition of Nuevo Banco Bisel S.A.
    
    
    (119,165
    )
    
    
    (127,663
    )
    
    
    (101,467
    )Other
    
    
    (71,453
    )
    
    
    (69,547
    )
    
    
    (62,443
    )Intangible assets  Organization and development expenses (c)
    
    
    (53,544
    )
    
    
    (50,378
    )
    
    
    (40,090
    )Other receivables from financial intermediation (d)
    
    
    
    
    
    
    
    
    
    
    27,633Deferred assets  Income tax (e)
    
    
    40,131
    
    
    
    46,667
    
    
    
    78,009Other assets (f)
    
    
    1,680
    
    
    
    2,832
    
    
    
    3,560Liabilities  Provisions (g)
    
    
    (51,362
    )
    
    
    (51,413
    )
    
    
    (46,923
    )Total
    
    
    (269,667
    )
    
    
    3,984
    
    
    
    (488,310
    )
 a)
    
    Government securities and assistance to the government sector: they are
valued in accordance with the regulations and standards issued by the Argentine
Government and Central Bank described in Notes 4.4.b.1), 4.4.b.3), 4.4.b.5) and
4.4.c). According to professional accounting standards, those holdings booked in
special investment accounts for which the Bank does not show intention of keeping
through their maturity and holdings of unlisted government securities and instruments
issued by the Central Bank, should be valued at their market value, whereas holdings
of guaranteed loans should be valued at their present value. 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.
During 2010 considering the favorable market situation and improvements in conditions
of the assets recorded in special investment accounts, the Bank has sold a significant
part of such.b)
    
    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 3,984 establishes specific amortization methods;
the maximum amortization allowed per annum is 20%.  F - 25




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 According to professional accounting standards effective in Argentina, business
combinations are recorded based on the market values of the acquired companys
identifiable net assets. Consequently, the difference between the purchase price and the
identifiable net asset measurement value is recorded as positive or negative goodwill,
as the case may be. If goodwill is positive, such goodwill (i) will depreciate
systematically throughout the estimated useful life and (ii) will be compared with its
recoverable value as of each year-end. If goodwill is negative, such goodwill will be
allocated to income (loss) in accordance with the changes in the specific circumstances
that created such negative goodwill.c)
    
    Intangible assets: the Bank and its subsidiaries capitalized under
Intangible Assets net of the related amortization amounts, the foreign exchange
differences related to the reimbursement of certain deposits in foreign currency
converted to pesos and the effect of court deposits dollarization. According to
professional accounting standards, the above mentioned amounts are charged to expense
and the book value of surpluses paid should decrease to 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.d)
    
    Other receivables from financial intermediation: 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.b.2)
and b.3), respectively, valued as mentioned in Note 4.4.h.5), 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.6). According to professional
accounting standards, such repurchase corporate bonds should be considered settled.
Consequently, liability as of December 31, 2008, would have decrease by 27,633.e)
    
    Income tax: the Bank and its subsidiaries determine income tax applying the
effective rate to the estimated taxable income, without considering the effect of the
temporary differences between book and taxable income. According to professional
accounting standards, income tax should be booked following deferred tax method,
recognizing (as a receivable or payable) the tax effect of temporary differences
between book and tax valuation of assets and liabilities, and subsequently charging
them to income for the years in which such differences are reversed, considering the
possibility of using net operating losses (NOLs) in the future.f)
    
    Other assets: the Bank recorded interest rate swap agreements in conformity
with the Central Bank accounting standards under memorandum accounts. 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.g)
    
    Liabilities: the Bank books 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 professional accounting standards, the Bank should
have recorded a liability related to this item.  6.2.
    
    Disclosure aspectsThere are certain disclosure differences between the criteria established by Central Bank
and Argentine professional accounting standards.
  F - 26




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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 40,598 and 24,945
(face value of 24,400), 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) of 22,097 and 27,128 (for a face value of 21,410
and 26,700), respectively, used to perform forward foreign currency trading
transactions through Rosario Futures Exchange (Rofex) and Mercado Abierto Electrónico
S.A. (MAE).c)
    
    NOBACs for an amount of 7,844 and 13,146 (for a face value of 7,600 and
13,000), 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)
    
    NOBACs for an amount of 5,501 and 10,591 (for a face value of 5,330 and
10,424), respectively, used to perform interest rate swap transactions, through
Mercado Abierto Electrónico S.A. (MAE).e)
    
    Argentine Government Bonds in Argentine pesos at private Badlar + 275 basis
points for an amount of 79,200 and 66,428 (for a face value of 80,000), respectively,
used as security in favor of SEDESA, in replacement of former Nuevo Banco Bisel S.A.s
preferred shares to secure payment of all obligations undertaken in the sales
agreement executed on May 28, 2007. The price payable was set at 66,240, plus 4%
nominal interest rate p.a., to be compounded through its settlement which will be made
before the expiration of the 15-year term as from the takeover date of former Nuevo
Banco Bisel S.A. (August 11, 2021).f)
    
    Other government and private securities for 1,462 and 2,820, respectively.
 7.2)
    
    Loans:
  7.3)
    
    Other receivables from financial intermediation:
 a)
    
    Special guarantee checking accounts opened at the Central Bank for
transactions related to the electronic clearing houses and similar entities, for an
amount of 287,135 and 242,426, respectively.b)
    
    Contributions to the mutual guarantee association Risk Fund of Garantizar SGR
for 10,170 and 10,000 respectively, resulting from contributions made by the Bank on
December 21, 2009, in its capacity as contributory partner of that company. Such
contribution may be fully or partially reimbursed once two and three years have
elapsed from the date of contribution.c)
    
    Contribution to the Risk Fund of Macroaval SGR for 5,622 and 5,368,
respectively, resulting from a contribution made 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 and three years have elapsed from the date of
contribution.d)
    
    As of December 31, 2010 it keeps certain amounts related to credit card
customers consumptions abroad as securities amounting to 1,257.
  F - 27




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 7.4)
    
    Investments in other companies:
 a)
    
    As of December 31, 2010, and 2009, this includes other investments in other
companies in the amount of 1,453.
 7.5)
    
    Other receivables:
 a)
    
    It carries as guaranty mainly transactions carried out on institutional
markets, credit card transactions, trust activities and lease guaranties amounting to
42,276 and 30,008, respectively.
 b)
    
    Other security deposits for 15,539 and 10,277, respectively.
 8.
    
    TRANSACTIONS WITH RELATED PARTIES
  Macro
    
    
    OtherBanco
    
    
    
    
    
    
    Securities
    
    
    subsidiariesBanco del
    
    
    Privado de
    
    
    Macro
    
    
    S.A.
    
    
    and relatedTucumán
    
    
    Inversiones
    
    
    Bank
    
    
    Sociedad
    
    
    parties
    
    
    Total
    
    
    TotalS.A.
    
    
    S.A.
    
    
    Limited
    
    
    de Bolsa
    
    
    (1)
    
    
    2010
    
    
    2009ASSETSCash
    
    
    
    
    
    
    
    
    
    
    3,090
    
    
    
    
    
    
    
    
    
    
    
    3,090
    
    
    
    2,996Loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51,676
    
    
    
    51,676
    
    
    
    13,216Other receivables from
financial
intermediation
    
    
    120,401
    
    
    
    
    
    
    
    
    
    
    
    5,050
    
    
    
    
    
    
    
    125,451
    
    
    
    70,105Receivables from
financial leases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,124
    
    
    
    2,124
    
    
    
    2,462Other receivables
    
    
    25
    
    
    
    1,251
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,276
    
    
    
    14,700Items pending allocation
    
    
    83
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    83
    
    
    
    4Total assets
    
    
    120,509
    
    
    
    1,251
    
    
    
    3,090
    
    
    
    5,050
    
    
    
    53,800
    
    
    
    183,700
    
    
    
    103,483LIABILITIESDeposits
    
    
    
    
    
    
    92
    
    
    
    16,991
    
    
    
    7,085
    
    
    
    181,483
    
    
    
    205,651
    
    
    
    130,490Other liabilities from
financial
intermediation
    
    
    120,151
    
    
    
    
    
    
    
    
    
    
    
    8,628
    
    
    
    
    
    
    
    128,779
    
    
    
    70,180Other liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    64Total liabilities
    
    
    120,151
    
    
    
    92
    
    
    
    16,991
    
    
    
    15,713
    
    
    
    181,483
    
    
    
    334,430
    
    
    
    200,734MEMORANDUM ACCOUNTSDebit balance
accounts 
Contingent
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,162
    
    
    
    1,162
    
    
    
    Debit balance
accounts  Control
    
    
    
    
    
    
    
    
    
    
    125,051
    
    
    
    
    
    
    
    257,237
    
    
    
    382,288
    
    
    
    432,639Credit balance
accounts 
Contingent
    
    
    923
    
    
    
    
    
    
    
    
    
    
    
    2,213
    
    
    
    
    
    
    
    3,136
    
    
    
    40,180Credit balance
accounts 
Derivatives (2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    99,413
    
    
    
    99,413
    
    
    
    
  F - 28




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Macro
    
    
    OtherBanco
    
    
    
    
    
    
    Securities
    
    
    subsidiariesBanco del
    
    
    Privado de
    
    
    Macro
    
    
    S.A.
    
    
    and relatedTucumán
    
    
    Inversiones
    
    
    Bank
    
    
    Sociedad
    
    
    parties
    
    
    Total
    
    
    Total
    
    
    TotalS.A.
    
    
    S.A.
    
    
    Limited
    
    
    de Bolsa
    
    
    (1)
    
    
    2010
    
    
    2009
    
    
    2008INCOME (LOSS)Financial income
    
    
    2
    
    
    
    44
    
    
    
    
    
    
    
    
    
    
    
    2,855
    (2)
    
    
    2,901
    
    
    
    2,794
    
    
    
    6,407Financial expense
    
    
    (3,300
    )
    
    
    (121
    )
    
    
    
    
    
    
    
    
    
    
    (3,099
    )
    
    
    (6,520
    )
    
    
    (5,025
    )
    
    
    (4,134
    )Service-charge income
    
    
    30
    
    
    
    5
    
    
    
    12
    
    
    
    52
    
    
    
    1,050
    
    
    
    1,149
    
    
    
    545
    
    
    
    235Other income
    
    
    6,427
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,427
    
    
    
    5,899
    
    
    
    8,068Total income / (loss)
    
    
    3,159
    
    
    
    (72
    )
    
    
    12
    
    
    
    52
    
    
    
    806
    
    
    
    3,957
    
    
    
    4,213
    
    
    
    10,576
 (1)
    
    Related to receivables from and payables to other related parties to the Bank 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 has recorded foreign currency trading transactions without delivery of the
underlying asset and involving related parties, in its memorandum accounts. 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, 2010, 2009 and 2008,
although there is no position for these transactions, the net intermediation income from such
transaction generated earnings for the year of around 32, 113 and 311, respectively. 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
    
    
    672,743,303
    
    
    
    1
    
    
    
    672,743
    
    
    
    
    
    
    
    
    
    
    
    672,743Acquired Registered
Class B shares of
common stock
    
    
    
    
    
    
    1
    
    
    
    (75,542
    )
    
    
    
    
    
    
    75,542
    
    
    
    Total 2008
    
    
    683,978,973
    
    
    
    
    
    
    
    608,437
    
    
    
    
    
    
    
    75,542
    
    
    
    683,979Acquired Registered
Class B shares of
common stock
    
    
    
    
    
    
    1
    
    
    
    (15,100
    )
    
    
    
    
    
    
    15,100
    
    
    
    Capital stock
decrease 
Registered Class B
shares of common
stock (1)
    
    
    (60,000,000
    )
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    (60,000
    )
    
    
    (60,000
    )Capital stock
increase 
Registered Class B
shares of common
stock (2)
    
    
    1,147,887
    
    
    
    1
    
    
    
    1,148
    
    
    
    
    
    
    
    
    
    
    
    1,148Capital stock
decrease 
Registered Class B
shares of common
stock (3)
    
    
    (30,641,692
    )
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    (30,642
    )
    
    
    (30,642
    )Total 2009
    
    
    594,485,168
    
    
    
    
    
    
    
    594,485
    
    
    
    
    
    
    
    
    
    
    
    594,485
  F - 29




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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, 2010:Registered Class A
shares of common
stock
    
    
    11,235,670
    
    
    
    5
    
    
    
    11,236
    
    
    
    
    
    
    
    
    
    
    
    11,236Registered Class B
shares of common
stock
    
    
    583,249,498
    
    
    
    1
    
    
    
    583,249
    
    
    
    
    
    
    
    
    
    
    
    583,249Total 2010
    
    
    594,485,168
    
    
    
    
    
    
    
    594,485
    
    
    
    
    
    
    
    
    
    
    
    594,485
 (1)
    
    Related to the reduction of the capital stock by 60,000,000 registered Class B shares
entitled to 1 vote each with a face value of Ps. 1 per share. These shares were included in
the Banks portfolio and were acquired under section 68, Law No. 17,811, as a result of the
macroeconomic context and fluctuations that the capital market was going through in
general. On April 21, 2009, and after BCBA authorization, the Banks General Regular and
Special Shareholders meeting approved the abovementioned capital reduction. During July
2009, the CNV authorized, the IGJ registered, and the Central Bank consented to the capital
stock reduction.(2)
    
    Related to the capital increase through the issuance of Ps. 1,147,887 of new common,
registered Class B shares with a face value of Ps. 1, each one entitled to one vote,
delivered to the minority shareholders of former Nuevo Banco Bisel S.A., in the legal
merger process of that bank (see also Note 3.6.).(3)
    
    Related to the reduction of the capital stock by 30,641,692 Class B registered shares
each one entitled to one vote, with a face value of Ps 1 per share. These shares were
included in the Banks portfolio and were acquired under section 68, Law No. 17,811 for the
same reasons mentioned in paragraph (2) above. On September 10, 2009, the Banks General
Regular and Special Shareholders meeting approved the abovementioned capital reduction
subject to the BCBAs consent. On November 23 and December 29, 2009 and January 15 and
March 25, 2010, the BCBA, consented to such capital reduction, the CNV approved it, the IGJ
recorded it and the Central Bank acknowledged it, respectively.
 In addition, net income per common share for the fiscal years ended December 31, 2010, 2009 and
2008, was computed by dividing net income by the weighted average number of outstanding common
 shares for each year.
 10.
    
    CORPORATE BONDS ISSUANCE
 The amounts recorded in the consolidated financial statements related to corporate bonds are as
follows:
 Remaining ofOriginal face
    

    face value as of
    
    
    As of December, 31Class
    
    value
    

    12/31/2010
    
    
    2010
    
    
    2009Subordinated
    
USD
    4,000,000
    a)

    
    
    
    
    
    
    
    
    
    963Subordinated  Class 1
    
USD
    150,000,000
    b.1)

    USD
    150,000,000
    
    
    
    598,470
    
    
    
    571,510Non-subordinated  Class 2
    
USD
    150,000,000
    b.2)

    USD
    106,395,000
    
    
    
    437,986
    
    
    
    418,257Non-subordinated  Class 3
    
USD
    100,000,000
    b.3)

    USD
    63,995,000
    
    
    
    198,478
    
    
    
    198,478Total
    

    
    

    
    
    
    
    
    1,234,934
    
    
    
    1,189,208
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BANCO MACRO S.A. AND SUBSIDIARIES
 Maturities of the corporate bonds as of December 31, 2010, are as follows:
 Fiscal Year
    
    Amounts2011
    
    
    18,4932012
    
    
    197,0662017
    
    
    423,0052036
    
    
    596,370Total
    
    
    1,234,934
 a)
    
    On January 20, 1997, the general special shareholders meeting of former Banco de
Salta S.A. (which was absorbed by the Bank in 1999) 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 former Banco Provincial de Salta 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.
 The installments of the corporate bonds were paid by the Bank in the original currency until
February 3, 2002, the day on which the amounts payable were switched into pesos at Ps.
1-to-USD 1, adjusted by CER.
 On August 2, 2010, the Bank settled the last installment in the amount of USD 200,000
(original value).
 b)
    
    On September 1, 2006 and June 4, 2007, the general regular shareholders meeting
approved the creation, and subsequent extension, 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 700,000,000 (seven
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.
 b.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:
 
    
    Included in 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.
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BANCO MACRO S.A. AND SUBSIDIARIES
 
    
    No interest on the Notes will be neither fall due and payable if: (i) payments
of such interest exceed the distributable amount, as defined in the pricing
supplement dated November 23, 2006; (ii) there is a general prohibition by the
Central Bank; (iii) the Bank is subject to the provisions of sections 34 or 35
bis, Financial Institutions Law; (iv) the Bank is receiving financial assistance
from the Central Bank under Article 17 of Central Bank Charter; (v) 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 (vi) 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, the payment of financial services may exceed net unappropriated
retained earnings as per the financial statements for the last fiscal year, with
an external auditors report, which should be appropriated to a reserve created to
such end, as established by Communiqué A 4,576.
 The Bank used the funds from such issuance to grant loans.
 b.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. Additionally, the Bank has the option to redeem
such issuance, either fully or partially, at any time and periodically. The Bank used
the funds from such issuance to grant loans.
 b.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. Additionally, the
Bank may fully redeem the issuance for tax purposes. The Bank used the funds from such
issuance to grant loans.
 On August 16, 2007, the SEC authorized the abovementioned exchange offers mentioned in b.1)
through b.3).
 Because of the macroeconomic context and fluctuations that the capital market went through
in general, as of December 31, 2009, the Bank repurchased nonsubordinated corporate bonds of
Class 2 and 3 for a face value amount of USD 79,610,000 (43,605,000 and 36,005,000 of Class
2 and 3, respectively), which were fully settled. Consequently, the Bank recognized total
income for such repurchases amounting to 101,291 (69,071 for the year ended December 31,
2009 and the remaining amount is related to prior years).
 On April 26, 2011 the Banks shareholders meeting approved the increase of the maximum aggregate principal amount of our Global
Medium-Term Note Program from USD 700 million up to USD 1,000 million (or its equivalent in other currencies).
 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 in 1999)
and the Government of the Province of Salta entered into an Agreement to Manage the Loan
Portfolio of former Banco Provincial de Salta 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, 2010, and 2009, the loans portfolio managed for principal and interest,
after application adjustments, amounted to 14,214 and 14,359, respectively.
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BANCO MACRO S.A. AND SUBSIDIARIES
 b)
    
    By virtue of the agreement formalized on August 11, 1998, between former Banco de
Jujuy S.A. (which was absorbed by the Bank in 2000) 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, 2010 and 2009, the loans portfolio managed amounts to 42,603 and 43,238,
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, 2010 and 2009, the loans portfolio managed amounts to 62,885 and 78,911,
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, whereby former Banco Bansud S.A. would be in charge of the
collection management, custody, settlement and any other task related to the corpus assets
which were originally recorded in the branches of former Scotiabank Quilmes S.A.
 As of December 31, 2010 and 2009, the portfolio managed by the Bank amounted to 99,833 and
114,328, respectively.
 e)
    
    On June 30, 2006, the Bank and Sud Inversiones y Análisis S.A. entered into a
management and custody agreement regarding the RETUC 1 trust loan portfolio.
 As of December 31, 2010 and 2009, the portfolio managed by the Bank for principal and
accrued interest amounted to 58,467 and 58,863, respectively.
 f)
    
    In addition, as of December 31, 2010 and 2009, the Bank had under its management
other portfolios for total amounts of 84,936 and 93,344, respectively.
 11.2.
    
    Mutual FundsAs of December 31, 2010, 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Fund
    
    Shares of interest
    
    
    equity
    
    
    Assets (a)Pionero Pesos
    
    
    397,491,205
    
    
    
    567,379
    
    
    
    375,088Pionero Renta Ahorro
    
    
    34,921,271
    
    
    
    57,561
    
    
    
    56,904Pionero Latam
    
    
    1,671,391
    
    
    
    8,004
    
    
    
    10,608Pionero FF  Fideicomiso Financieros
    
    
    25,003,634
    
    
    
    36,101
    
    
    
    36,016Pionero Renta
    
    
    36,771,835
    
    
    
    131,399
    
    
    
    130,527Pionero Acciones
    
    
    1,251,979
    
    
    
    4,183
    
    
    
    3,926Pionero Renta Dólares
    
    
    6,653,558
    
    
    
    13,350
    
    
    
    12,253Pionero América
    
    
    342,851
    
    
    
    1,678
    
    
    
    1,608Galileo Event Driven FCI
    
    
    16,000,624
    
    
    
    121,823
    
    
    
    118,104Galileo Argentina FCI
    
    
    4,105,386
    
    
    
    24,692
    
    
    
    24,281Total
    
    
    524,213,734
    
    
    
    966,170
    
    
    
    769,315
 (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.
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BANCO MACRO S.A. AND SUBSIDIARIES
 12.
    
    BANK DEPOSITS GUARANTEE INSURANCE SYSTEM
 Law No. 24,485, and Presidential Decree No. 540/95, provided for the organization of a Bank
Deposit Guarantee Insurance System, characterized as being limited, mandatory and for valuable
consideration, designed to provide coverage for risks inherent in bank deposits, supplementary
to the bank deposit privileges and protection offered by the system created by Financial
Institutions Law. Such law also provided for the organization of SEDESA to manage the Deposit
Guarantee Fund. Such company was organized in August 1995. The Bank holds a 9.9891% equity
interest therein, according to the percentages set forth in Central Bank Communiqué B 10,060
of April 4, 2011.
 This system shall cover the deposits in Argentine pesos and foreign currency with the
participating institutions as checking accounts, savings accounts, certificates of deposit or
any other modes determined by Central Bank, as long as fulfilling the requirements under
Presidential Decree No. 540/95 and any others established by the enforcement agency. On the
other hand, Central Bank established that the deposits made by other financial institutions,
those made by persons related to the Bank, deposits of securities, among others, would be
excluded from the deposit guarantee system.
 13.
    
    TRUST AGREEMENTS
 The Bank is related to different types of trusts. Below the different trust agreements are
disclosed, according to the Banks business purpose:
 13.1.
    
    Interest in trusts for investment purposes.As of December 31, 2010 and 2009, the amounts recorded in the Banks consolidated
financial statements for certificates of participation (net of allowances for 231,184 and
224,193, respectively) and debt securities held in financial trusts under Other
receivables from financial intermediation  Other receivables not covered by debtors
classification regulations, amounted to:
 Financial trust
    
    2010
    
    
    2009Certificates of participation:TST & AF (a)
    
    
    97,181
    
    
    
    46,733Tucumán (b)
    
    
    63
    
    
    
    25,163Luján (c)
    
    
    
    
    
    
    77,348Others (d)
    
    
    23,255
    
    
    
    16,727Subtotal certificates of participation
    
    
    120,499
    
    
    
    165,971Debt securities:Underwriting agreements (e)
    
    
    54,566
    
    
    
    70,645San Isidro (f)
    
    
    87,920
    
    
    
    82,925Created by Decree 976-01 (g)
    
    
    51,763
    
    
    
    31,570Galtrust (h)
    
    
    32,874
    
    
    
    Chubut oil & gas royalties (i)
    
    
    24,313
    
    
    
    Others
    
    
    9,023
    
    
    
    21,647Subtotal debt securities
    
    
    260,459
    
    
    
    206,787Total interest in trusts (1)
    
    
    380,958
    
    
    
    372,758
 (1)
    
    See also Note 22.
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BANCO MACRO S.A. AND SUBSIDIARIES
 (a)
    
    TST & AF Trust
 On July 14, 1999, Austral Financial LLC, in its capacity as trustor, and First Trust
of New York National Association, in its capacity as trustee, entered into a trust
agreement known as TST & AF Financial Trust. On November 29, 2005, the trustor, the
trustee and the beneficiaries (Austral Financial LLC, Proa del Puerto S.A. and Macro
Bank Limited) agreed to replace the trustee by Sud Inversiones y Análisis S.A.
 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. Therefore, it
will terminate 30 years after its execution date and/or the date in which the project
is paid in full, sold or otherwise fully dispose of.
 The Trust issued certificates of participation with economic rights proportional to
the capital invested by each Beneficiary. However, the trust is controlled jointly by
all certificate-of-participation holders.
 As of December 31, 2010 and 2009, Banco Macro S.A. is the beneficiary of 100% and 50%
of the certificates of participation issued by the trust, respectively.
 As per the latest accounting information available to date, corpus assets amounted to
about 93,908.
 (b)
    
    Tucumán Trust
 On 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.
 Tucumán Trust issued certificates of participation Class A, with characteristics of
debt securities and Class B (subordinated to Class A). The unanimous vote of all
certificates of participation is required to control the trust (some of them with
characteristics of debt securities).
 As of December 31, 2007, Banco Macro S.A. held the Class A certificates. On June 6,
2008, partial settlements of the Tucuman Trusts certificates were made by the Trust.
In addition Banco Macro S.A. acquired the rest of Class B certificates.
Consequently, since that date, Banco Macro S.A. owns 100% of the trust certificates.
 As of December 31, 2010, only class B certificates, entitled to the Trust equity,
were pending payment.
 As per the latest accounting information available to date, corpus assets (mainly,
loans granted) amounted to about 8,744.
 This trust will end with the full settlement of the certificates of participation.
 (c)
    
    Luján Trust
 On May 20, 2003, the Luján trust was created for the purpose reduce the credit risk
of the financing granted by Banco Macro S.A. to Federalia S.A. de Finanzas.
 The trust issued different classes of certificates of participation, all of them
entitled to vote but with different economic rights (some of them with
characteristics of debt securities).
 The main asset managed by the trust involves the real estate properties located in
the districts of Luján, Navarro and General Rodríguez in the Province of Buenos
Aires.
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BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31, 2007, the Bank was the beneficiary of 100% of the certificates
issued by the trust. On June 6, 2008, the Bank sold on credit all of the certificates
of participation to Federalia S.A. de Finanzas.
 On September 16, 2009, the Bank entered into an agreement with Federalia S.A. de
Finanzas, whereby the Bank repurchased the 100% of this trusts certificates. The
Bank paid the price of this transaction part in cash and the rest by the settlement
of the loan mentioned before.
 On December 3, 2010, the Bank executed an agreement to sell 100% of the trusts
certificates, in two cash installments. On December 17, 2010, the first installment
was paid, with the second installment falling due on May 30, 2011.
 (d)
    
    Others
 Including Bisel Trust, which was created 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, with assets transferred by former Banco Bisel S.A., and with Banco
de la Nación Argentina being 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, 2010, and 2009, Banco Macro S.A., is beneficiary of 100% of the certificates
issued by such trust. Additionally, an allowance was booked for the full amounts
receivable booked on account of such certificates, since they were deemed
unrecoverable.
 (e)
    
    Underwriting agreements
 It relates to prepayments towards the placement price of trust securities of the
financial trusts under public offerings, made by the Bank through underwriting
agreements, such as Consubond, Tarjeta Shopping and Consumax, among others. The
assets managed for these trusts are mainly related to securitizations of consumer
loans issued by others. Trust securities are placed once public offering is
authorized by the CNV. Upon expiry of the placement period, once all trust securities
have been placed on the market, the Bank recovers the disbursements made, plus the
amount equal to the agreed-upon rate (underwriting Price). If after making the best
efforts, such trust securities cannot be placed, the Bank (Underwriter) will retain
the securities subject to underwriting.
 (f)
    
    San Isidro Trust
 On June 4, 2001, Fideicomiso San Isidro was created for the purpose of securing loans
that Banco Macro S.A. had previously granted to the trustor. The corpus asset was a
real estate property.
 The certificates of participation were delivered to Banco Macro S.A. to settle a loan
granted previously to República S.A. de Finanzas.
 Subsequently, a real state urbanization project was undertaken prior to the sale of
the real property. On November 7, 2008, the Bank sold on credit all of the
certificates of participation issued by the trust to an unrelated company. This loan
was secured by such certificates.
 Additionally, the trust issued debt securities to finance its activity for a total
amount of USD 20,700,000. The Bank acquired such debt securities, which are entitled
to vote, taking the control of the main decisions of the Trust.
 According to the accounting information available as of the date of issuance of these
consolidated financial statements, the corpus assets amounted to about 102,384.
 (g)
    
    Trust created by Decree 976-01
 On September 13, 2001, the Argentine Government (trustor) and Banco de la Nación
Argentina (trustee) entered into a trust agreement called Fideicomiso Creado por
Decreto 976-01 (Trust created by Presidential Decree 976-01).
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BANCO MACRO S.A. AND SUBSIDIARIES
 The purpose of the Trust is the development of projects, works, services and
maintenance on road and railway infrastructure in rural and semirural areas, among
others. The trust revenues (corpus assets) arise, mainly, from collecting tax on gas
oil, equivalent to 22% of the price per liter. Such tax was created by Law No. 26,028
and its effective term was subsequently extended until 2024 by Law 26,422.
 As of the date of issuance of these consolidated financial statements, the debt
securities acquired by the Bank account for less than 2% of the trust issues.
 (h)
    
    Galtrust Financial Trust
 On October 13, 2000, Banco de Galicia y Buenos Aires S.A. (trustor) and First Trust
of New York N.A., permanent representation in Argentina (financial trustee),
organized Galtrust I financial trust. The purpose of the trust is to collect the
corpus assets (BOGAR 2018) and settle the debt securities and certificates of
participation issued.
 BOGAR 2018 arise from the exchange of loans in US dollars granted by the trustor to
several provincial governments in Argentina, secured with Federal Tax Revenue Sharing
System, under Presidential Decree No. 1,579 issued on August 27, 2002.
 As of the date of issuance of these financial statements, the Bank is the beneficiary
of the 26% of the debt securities in force.
 (i)
    
    Chubut oil & gas royalties Trust
 On July 6, 2010, the Province of Chubut (trustor) and Banco de Valores S.A. (trustee)
entered into a trust agreement that created the financial trust Fideicomiso Chubut
regalías hidrocarburíferas (Chubut oil & gas royalties Trust).
 The purpose of such trust is to finance production projects, infrastructure works in
the province of Chubut and financial investments aimed at increasing the states
interest in the energy sector. Trust revenues (corpus assets) arise mainly from
credits resulting from the assignment, by the Province in favor of the trustee, of
the rights on such oil & gas royalties collected by the appointed concessionaire (Pan
American Energy LLC., Argentine Branch).
 As of the date of issuance of these financial statements, the debt securities
acquired by the Bank account for 4% of the trust issues.
 13.2.
    
    Trusts created using financial assets transferred by the Bank
 The 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.
 The Bank does not hold securities issued by these trusts.
 As of December 31, 2010, and 2009, the trusts assets managed amount to 7,396 and 7,353,
respectively.
 13.3.
    
    Trusts as collateral for the loans granted by the Bank
 As 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
 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.
 As of December 31, 2010 and 2009, the trusts managed amount to 273,508 and 383,533,
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 fees earned by the Bank from its
role as trustee are calculated according to the terms and conditions of the agreements.
 Trusts usually manage funds derived from the activities performed by trustors for the
following main purposes:
 (a)
    
    Guaranteeing in favor of the beneficiary the existence of the resources
required to finance and/or pay certain obligations, such as the payment of
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)
    
    Being a party to public work concession agreements granting road
exploitation, management, keeping and maintenance.
 Additionally, other trusts manage specific assets, mainly real property.
 As of December 31, 2010 and 2009, the trusts assets managed amount to 885,863 and
604,345, respectively.
 14.
    
    COMPLIANCE WITH REQUIREMENTS TO ACT AS OVER-THE-COUNTER SECURITIES MARKET BROKER
 Under CNV Resolution 368/01, the Banks shareholders equity exceeds the minimum amount
required.
 15.
    
    RESTRICTION ON EARNINGS DISTRIBUTION
 a)
    
    According to Central Bank provisions, 20% of income for the year plus/minus
prior-year adjustments and less accumulated losses as of the prior year-end, if any,
should be appropriated to Legal Reserve. Consequently, the Shareholders Meeting held on
April 26, 2011, decided to apply 202,086 out of Unappropriated retained earnings to
increase such legal reserve.
 b)
    
    As established in the issuance conditions for the 1st series of Class 1 Corporate
Bonds mentioned in Note 10.b.1) and as established by Central Bank Communiqué A 4,576
the Shareholders Meeting held on April 26, 2011, decided to appropriate 58,146 out of
unappropriated retained earnings to set a special reserve for interest to be paid upon the
maturities taking place in June and December 2011.
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BANCO MACRO S.A. AND SUBSIDIARIES
 c)
    
    Under Law No. 25,063, dividends to be distributed in cash or in kind in excess of
taxable income accumulated as of the end of the fiscal year immediately preceding the
payment or distribution date shall be subject to a 35% income tax withholding as single
and definitive payment. Income to be considered in each year will result from deducting
the tax paid for the tax period(s) in which income was distributed or the related
proportional amount from taxable income, and adding dividends or income from other
corporations not computed upon determining such income in the same tax period(s).
 d)
    
    Through Communiqué A 5,072, the Central Bank established the general procedure for
the distribution of earnings. According to that procedure, earnings may only be
distributed upon express authorization by the Central Bank, provided there are no records
of the Bank having received financial aid from the Central Bank due to illiquidity or
shortages in payments of minimum capital, among other previous conditions listed in the
communiqué.
 Therefore, earnings may only be distributed as long as the Bank has income after deducting,
Unappropriated retained earnings, the amounts of the legal and statutory reserves which are
mandatory, the positive net difference between the book value and market value or present
value reported by Central Bank, as the case may be, of government debt securities and/or of
the Central Bank monetary regulation not valued at market price, amounts capitalized due to
legal proceedings related to deposits, among other items.
 As of December 31, 2010, the adjustments to be made to unappropriated retained earnings are
as follows:
 i.
    
    Capitalized amounts related to compliance with legal measures related to
deposits in the amount of 52,273.
 ii.
    
    The positive net difference between the book value and the market value of
unlisted government securities and federal guaranteed loans in the amount of 17,387.
 Lastly, the maximum amount to be distributed cannot exceed the excess payments of required
capital minimum considering, for this purpose only, an increasing adjustment of 30% the
required amount and deducting the abovementioned adjustments, the capitalized amount for
minimum presumed income tax and the reserves used to compensate instruments representing
long-term debt liable to forming part of the Banks computable equity.
 Having applied the above, the maximum amount to be distributed for the year ended December
31, 2010, totals 1,785,335.
 Subsequently, on April 26, 2011,the Regular and Special General Shareholders Meeting of Banco
Macro S.A. approved, among other issues, (i) the compensation paid to the Directors amounting
to 41,776 (ii) the distribution of cash dividends for an amount of up 505,312, which was
authorized by the Central Bank on March 18, 2011 and (iii) the write off of payments made on
behalf of shareholders for their personal assets tax for an amount of 11,156.
 16.
    
    TAX CLAIMS
 Federal Public Revenue Agency (AFIP) has reviewed the tax returns filed by the Bank related to
income tax and minimum presumed income tax in previous fiscal years.
 Additionally, provincial and municipal tax agencies have conducted reviews of other taxes
(mainly taxes on gross income) for previous fiscal years.
 Listed below are the most significant claims arising from these reviews:
 a)
    
    AFIP objected the income tax returns filed by the former Banco Bansud S.A. (for
fiscal years ended from June 30, 1995, through June 30, 1999, and the six-month irregular
period ended December 31, 1999) and by the former Banco Macro S.A. (for fiscal years ended
1998, 1999 and 2000).
  F - 39




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 The issues under discussion and on which the regulatory agency bases its position are the
impossibility to deduct the credits with collateral security and the requirement to begin
judicial collection proceedings for outstanding receivables to be deducted for tax purposes.
Both issues were analyzed by the Federal Administrative Tax Court in similar cases, which
issued a resolution in favor of the position assumed by the Bank.
 On June 29, 2009, and August 26, 2009, the Bank partly joined a settlement agreement under
Law No. 26,476 Title I regarding the credits in question that lack collateral security.
 b)
    
    AFIP objected to the income tax returns of the Bank for fiscal years ended December
31, 2002, through December 31, 2004, and the minimum presumed income tax settlement of the
Bank for such tax years.
 The matter under discussion and on which the tax agency bases its position is the tax value
of the amount pending receipt at that time for the compensation bonds resulting from the
asymmetric translation into pesos (Law No. 25,561, Presidential Decree No. 214/02 and
216/02).
 On August 31, 2009, the Bank joined a settlement agreement created by Law No. 26,476, Title
I regularizing the claim brought by tax authorities.
 c)
    
    The Buenos Aires City Tax Authorities (DGR CABA) attributed turnover tax differences
to former Banco Macro S.A. for fiscal year ended 2002, in relation to the treatment of
foreign exchange differences and the compensation bond.
 On February 27, 2009, a precautionary measure filed by the Bank was rejected and, therefore,
an appeal was filed with Court of Appeals in and for the City of Buenos Aires.
 In September 2010, the Bank joined a settlement agreement under Law No. 3,461, of the DGR
CABA regularizing the claim brought by tax authorities.
 d)
    
    The DGR CABA attributed turnover tax differences to former Banco Bansud S.A. for
fiscal years ended 2002 and 2003, based mainly on the adjustments made in objections
regarding foreign exchange differences and the compensation bond.
 In October 2009 and September 2010, the Bank partially joined a settlement agreement under
General Resolution 1,489/09 of a DGR CABA and under Law No. 3,461, of the DGR CABA
regularizing the claim brought by tax authorities.
 e)
    
    The Buenos Aires Province Tax Authorities (DGR ARBA) attributed a turnover tax
difference to Banco Macro S.A. related to mechanisms of distribution of gross income to
the different provinces in relation to period 2002 and 2006. On May 5, and October 14,
2008, the Bank filed its defense brief which was dismissed. The Bank filed appeals with
the Province of Buenos Aires Tax Appeal Court, which are still pending judgement.
 In August 2010, the Bank partially joined a settlement agreement under Law 12,914,
Regulatory Resolution No. 35/2010.
 Therefore, the items described in a) through e) above have now been settled.
 Additionally, there are other appeals which are not relevant with Tax Court.
 The Banks Management believes there are no additional significant effects to those already
recognized in the books that may result from the final outcome of such claims.
 17.
    
    RISK MANAGEMENT POLICIES
 In financing activities there are a multiple number of risks to which banks are exposed. These
risks are managed through a continuous Identification, Evaluation, Measuring,
Control/Mitigation and Monitoring process of the risk events or potential risk situations, so
as to provide reasonable assurance regarding their impact.
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 All persons working at the Bank are responsible for the risk management process, in spite of
the fact that the process begins with the Banks Board of Directors and has been designed to
provide reasonable assurance that the Banks objectives are been fulfilled; every employee
plays a specific role.
 The Board of Directors establishes the organizational risk strategies and approves the policies
and structures upon which the Bank will base its comprehensive risk management.
 The members of the Board of Directors participate actively in the daily management, sharing
their experience and knowledge of the financial system, forming different Committees
(Executive, Audit, Anti-Money-Laundering, Internal Audit, IT, Assets and Liabilities (CAP),
Loan, Recovery and Operational Risk Committees).
 Some of the key risks in financing activities involve:
 Credit risk
 The credit risk results from the possibility of loss derived from our customers or
counter-parties from fully or partially breaching financial obligations they have undertaken
with the Bank.
 Banco Macro S.A. has counter-party and credit risk policies, aimed at its management and
control, the purpose of which is to ensure risks fall within a risk tolerance level decided by
the bank and the tolerance level established by Central Bank regulations effective to this end.
The Credit Risk Management is in charge of applying the policies, administrating and monitoring
the exposure to risk. The Board of Directors and the Executive and Senior Credit Committees
are empowered to define and amend credit policies, the application of which is the
responsibility of the abovementioned Management.
 Procedural manuals and tools (information systems, rating and monitoring systems, measuring
models, recovery policies) have been developed, which, as a whole, allow for a risk treatment
based on the type of the customers. Compliance with Central Bank credit regulations related to
credit diversification, grading (establishing credit limits based on the customers net worth)
and concentration, is also monitored continuously.
 The Management of Corporate and Individual Risks and Micro-projects analyzes the credit risks
of the different segments and provides technical support for credit decisions. The Senior
Committee, Junior Committee, SME Banking Committee, Agro Committee, the Large and Regional
Companies Committee and senior officers with customer-rating powers participate in the credit
approval process, within a progressive scale in relation to the amount being requested,
transactions terms and conditions.
 The Credit Administration and Transactions Management is also required to mitigate credit risks
through its Credit Review, Lending Transactions and Credit Administration sectors. To do so, it
monitors the documentation and settlement of transactions, among other matters. Also, the
classification of debtors and the debtors guarantees are reviewed on a regular basis (so as to
determine the sufficiency of the provisions in conformity with the standards established by the
Central Bank in this regard).
 Within Credit Risk Management, the Analysis and Planning area duties involve monitoring risk
exposure using tools such as alerts and indicators, preparing reports that serve as a source of
information in portfolio management by the Banks Management, Credit Risk Management and the
commercial areas.
 Also, Prelegal Recovery Management defines and carries out the recovery tasks involving the
arrears portfolio.
 Finally, Management has a specific area focused on creating, amending and formalizing the
standards and procedures that regulate the credit cycle and the purpose of which is to minimize
and/or neutralize credit risks.
 Operational risk
 The Bank adopted the definition of Operational risk under the Basel 2 Accord and the definition
established by the Central Bank through its Communiqué A 4793, which consists in the risk of
incurring losses due to the lack of adjustment or weaknesses in the internal processes, systems
or persons, or due to external events. This definition includes legal risk but excludes
strategic and reputation risk.
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 The Bank has policies, procedures and structures, appointing a Head of Operational Risk and an
Operational Risk Committee, to ensure an Operational Risk Management plan for identifying,
assessing and managing risks, with the purpose of assisting Area Managers and the Banks Board
of Directors, in an environment of rapidly changing and significant risks.
 In this context, the Evolutionary Comprehensive Operational Risk Management Model was
developed, which involves the identification, measurement, management and monitoring of
operational risks. A training plan was designed to begin conveying the concepts inherent to
Operational Risk and the cultural change that this generates, and an implementation plan of the
model was put into practice to achieve full implementation of all of its stages.
 During fiscal 2010, the Bank continued to apply the above model, using it to carry out tasks
intended to assess all of the processes. Progress was made in integrating the operational and
technological risk assessment models, risk timing and impact assessment matrices were applied
to assess processes and subprocesses. The qualitative assessment of risks was enhanced,
identifying action plans and proposals to make improvements in critical processes, all of this
complying fully with the set goals.
 Also a procedure has been applied to gather information on events and losses, the purpose of
which is to reduce incidents and loss amounts, thus incorporating a quantitative assessment
into the risk management model, by recording risk events and losses in a centralized database.
 During 2010, a tool was put in place to manage operational risk and used to manage identified
risks. Different indicators are calculated so as to have an information system providing an
overall view of the results of the different practices and tools involved in operational risk
management.
 Aiming to reinforce the operational risk function, during 2010 progress was made in
implementing the method through which the IT areas can identify, assess and control risks
related to the Banks information assets and to specific events, generating information that is
later taken into consideration when decisions have to be made.
 With regards to IT and information systems Risk Management, the Bank has contingency and
business continuity plans in place to minimize the risks that could affect the Banks
continuity of operations.
 Market and Liquidity Risk
 The market risk is defined by the uncertainty to which the Banks future results are exposed in
light of adverse movements in market conditions. Should such adverse market conditions arise,
the Bank would sustain unexpected losses or decreases in income as a result of changes in the
value of the main market factors or variables, such as interest rates, foreign exchange rates
and financial asset values, among others.
 The liquidity risk is related to the Bank suffering a shortage of funds to meet its
obligations, and that hence, it is required to depend on assets or acquire alternative
resources (in unfavorable conditions), in order to meet customer fund requirements.
 Banco Macro S.A. has written policies on the management and administration guidelines in
relation to market, liquidity and price risks.
 The Banks investment strategy is reviewed on a regular basis by the CAP in the context of the
economic and market tendencies in relation to the market risk, assets and liabilities
concentration, maturity, expected rate of return and alternative investments, according to
which the exceptions and capacities are also assessed.
 The CAP evaluates the Banks situation based on reports provided by Finance Management. To
analyze the market risk it uses the VAR (Value at Risk) method, determining the present value
of net assets, weighting it using the modified duration and the historical volatility of the
interest rate at a 99% confidence interval.
 The Financial Planning area uses the following instruments in preparing its reports and
recommendations: sensitivity analysis, stress tests, index curves, in addition to other
simulations. The adoption of measures based on the information provided is left to the Finance
Managements discretion, in relation to several factors that it must take into consideration
such as the market conditions or the complexity and variety of transactions.
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 The reports prepared contemplate the following aspects: changes in yield curves; a mismatch of
assets and liabilities in relation to currency, rates, terms and based on their volatility and
speed of realization; minimum cash; changes, rates and volatility of term deposits, and the
participation of institutional investors; price and liquidity risk; limits established by the
CAP and issuance of warnings.
 Additionally, the Bank seeks to maintain an adequate degree of liquidity through the prudent
management of assets and liabilities, in regards to both the cash flow as well as the
concentration thereof.
 The administration of liquidity needs to be supported by a planning process that determines the
current and future cash needs, considering changes in economic, political, regulatory and other
conditions. This makes it necessary to identify forecast and possible cash outflows, as well as
consider alternative strategies to handle assets and liabilities in critical situations.
 The Bank evaluates the liquidity situation through different tools, some of which include:
 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
there being 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.
 Finally, the purpose of the price risk or interest rate policy is to ensure that the Committee
has the adequate information, tools and procedures enabling it to measure, manage and control
the price risk.
 One of the objectives in relation to the price risk is eliminating the unwanted risk from the
different assets and liabilities, but it is also the Banks objective to take advantage of the
business opportunities that changes in interest rates and prices may offer.
 The Finance Management will report to the CAP on a monthly basis on the price risk exposure and
the effects that may be caused in the Banks financial margin. The risk reports should clearly
compare the existing exposure with the limits policy, using it for analysis purposes:
identification of market factors, sensitivity to market factors, volatility, correlations,
value at risk, index curves, stress tests, among others.
 18.
    
    BALANCES IN FOREIGN CURRENCY
 The balances of assets and liabilities denominated in foreign currency are as follows:
 As of December 31,2010
    
    
    2009ASSETSCash
    
    
    2,199,875
    
    
    
    2,634,999Government and private securities
    
    
    2,581,728
    
    
    
    1,548,189Loans
    
    
    2,382,835
    
    
    
    1,899,185Other receivables from financial intermediation
    
    
    2,846,622
    
    
    
    1,312,797Receivables from financial leases
    
    
    59,958
    
    
    
    72,334Investments in other companies
    
    
    577
    
    
    
    550Other receivables
    
    
    43,877
    
    
    
    30,036Items pending allocation
    
    
    456
    
    
    
    257Total
    
    
    10,115,928
    
    
    
    7,498,347
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31,2010
    
    
    2009LIABILITIESDeposits
    
    
    3,890,417
    
    
    
    3,895,939Other liabilities from financial intermediation
    
    
    3,329,221
    
    
    
    1,892,293Other liabilities
    
    
    5,495
    
    
    
    5,546Subordinated Corporate Bonds
    
    
    598,470
    
    
    
    571,510Items pending allocation
    
    
    3
    
    
    
    2Total
    
    
    7,823,606
    
    
    
    6,365,290
 19.
    
    INTEREST-BEARING DEPOSITS WITH OTHER BANKS
 Included in Cash there are: (a) no interest-bearing deposits with the Central Bank as of
December 31, 2010 and 2009 and (b) interest-bearing deposits in foreign banks totaling 269,155
and 363,041 as of December 31, 2010 and 2009, respectively.
 In 2010 and 2009 interest-bearing deposits with the Central Bank did not yield a nominal annual
interest rate. Additionally, interest-bearing deposits in foreign banks yielded a nominal
annual interest rate of approximately 0.59% and 0.54% as of December 31, 2010 and 2009,
respectively.
 20.
    
    GOVERNMENT AND PRIVATE SECURITIES
 As of December 31,2010
    
    
    2009GOVERNMENT SECURITIESHoldings in Special Investment AccountsIn pesos:Federal Government bonds at 2%  Maturity 2014
    
    
    
    
    
    
    222,169Federal Government bonds at Badlar + 2.75%  Maturity 2014
    
    
    
    
    
    
    191,384Secured bonds Decree 1,579/02 at 2%  Maturity 2018
    
    
    
    
    
    
    178,979Discount bonds at 5.83%  Maturity 2033
    
    
    
    
    
    
    18,207Consolidation bonds at 2%  Sixth series  Maturity 2024
    
    
    
    
    
    
    5,350Subtotal holdings in Special Investment Accounts  In pesos
    
    
    
    
    
    
    616,089In foreign currency:Federal Government bonds at 7%  Maturity 2015
    
    
    
    
    
    
    38,881Federal Government bonds at Libor  Maturity 2012
    
    
    
    
    
    
    1,784Par bonds at variable rate  Maturity 2038 (governed by Argentina legislation)
    
    
    
    
    
    
    1,594Federal Government bonds at Libor  Maturity 2013
    
    
    
    
    
    
    562Par bonds at variable rate  Maturity 2038 (governed by New York State legislation)
    
    
    
    
    
    
    461Subtotal holdings in Special Investment Accounts  In foreign currency
    
    
    
    
    
    
    43,282Subtotal holdings in Special Investment Accounts
    
    
    
    
    
    
    659,371Holdings for trading or financial intermediationIn pesos:Federal Government bonds at Badlar + 2.75%  Maturity 2014
    
    
    200,925
    
    
    
    1,464Secured bonds Decree 1,579/02 at 2%  Maturity 2018
    
    
    40,988
    
    
    
    1,433Consolidation bonds of social security payables at 2%  Maturity 2014
    
    
    7,029
    
    
    
    7,525Discount bonds at 5.83%  Maturity 2033
    
    
    6,956
    
    
    
    9,752Federal Government bonds at 2%  Maturity 2014
    
    
    3,674
    
    
    
    6,579Federal Government bonds at 10.50%  Maturity 2012
    
    
    1,059
    
    
    
    189Federal Government bonds at Badlar + 3%  Maturity 2015
    
    
    901
    
    
    
    1,064Consolidation bonds at 2%  Sixth series  Maturity 2024
    
    
    645
    
    
    
    382Par bonds at variable rate  Maturity 2038
    
    
    519
    
    
    
    261GDP  Related Securities  Maturity 2035
    
    
    54
    
    
    
    325Others
    
    
    279
    
    
    
    943Subtotal holdings for trading or financial intermediation  In pesos
    
    
    263,029
    
    
    
    29,917
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31,2010
    
    
    2009GOVERNMENT SECURITIES (contd.)In foreign currency:Treasury Bill  Maturity 2011
    
    
    198,790
    
    
    
    Federal Government bonds at Libor  Maturity 2012
    
    
    42,466
    
    
    
    52,874Federal Government bonds at 7%  Maturity 2015
    
    
    1,640
    
    
    
    1,544Federal Government bonds at Libor  Maturity 2013
    
    
    1,113
    
    
    
    345Federal Government bonds at 7%  Maturity 2017
    
    
    1,026
    
    
    
    Treasury Bill  Maturity 2010
    
    
    
    
    
    
    379,666Others
    
    
    64
    
    
    
    505Subtotal holdings for trading or financial intermediation  In foreign currency
    
    
    245,099
    
    
    
    434,934Subtotal holdings for trading or financial intermediation
    
    
    508,128
    
    
    
    464,851Unlisted government securitiesIn pesos:Province of Buenos Aires treasury bills at 168 days  Maturity 2011
    
    
    50,084
    
    
    
    Province of Buenos Aires treasury bills at 84 days Maturity 2011
    
    
    49,575
    
    
    
    Federal Government bonds at Badlar + 3.50%  Maturity 2013
    
    
    46,350
    
    
    
    44,541Federal Government bonds at variable rate  Maturity 2013
    
    
    7,523
    
    
    
    9,738Province of Tucumán bonds at 2%  Maturity 2018
    
    
    1,565
    
    
    
    1,984Consolidation bonds at 2%  Maturity 2010
    
    
    
    
    
    
    199Others
    
    
    3
    
    
    
    7Subtotal unlisted government securities  In pesos
    
    
    155,100
    
    
    
    56,469In foreign currency:Province of Córdoba Debt Securities at 12%  Maturity 2017
    
    
    17,498
    
    
    
    19,160Province of Tucumán bonds at Libor  Maturity 2015
    
    
    2,455
    
    
    
    3,820Subtotal unlisted government securities  In foreign currency
    
    
    19,953
    
    
    
    22,980Subtotal unlisted government securities
    
    
    175,053
    
    
    
    79,449Instruments issued by the Central Bank of ArgentinaIn pesos:Unlisted Central Bank bills and notes (Lebacs / Nobacs)
    
    
    3,167,344
    
    
    
    4,371,284Listed Central Bank bills and notes (Lebacs/ Nobacs)
    
    
    681,949
    
    
    
    264,485Subtotal instruments issued by Central Bank
    
    
    3,849,293
    
    
    
    4,635,769Securities under repurchase agreementsIn pesos:Unlisted Central Bank bills and notes (Lebacs / Nobacs)
    
    
    148,959
    
    
    
    14,652Consolidation bonds at 2%  Sixth series  Maturity 2024
    
    
    18,518
    
    
    
    Listed Central Bank bills and notes (Lebacs/ Nobacs)
    
    
    7,514
    
    
    
    Discount bonds at 5.83%  Maturity 2033
    
    
    4,797
    
    
    
    Federal Government bonds at Badlar + 2.75%  Maturity 2014
    
    
    990
    
    
    
    GDP  Related Securities  Maturity 2035
    
    
    149
    
    
    
    Subtotal securities under repurchase agreements  In pesos
    
    
    180,927
    
    
    
    14,652In foreign currency:Federal Government bonds at 7%  Maturity 2013
    
    
    2,299,088
    
    
    
    Federal Government bonds at 7%  Maturity 2017
    
    
    
    
    
    
    1,046,220Subtotal securities under repurchase agreement  In foreign currency
    
    
    2,299,088
    
    
    
    1,046,220Total government securities
    
    
    7,012,489
    
    
    
    6,900,312PRIVATE SECURITIESInvestments in listed private securitiesIn foreign currency:Shares
    
    
    17,588
    
    
    
    Mutual Funds
    
    
    
    
    
    
    773Subtotal listed private securities  In foreign currency
    
    
    17,588
    
    
    
    773Total private securities
    
    
    17,588
    
    
    
    773Total government and private securities, before allowances
    
    
    7,030,077
    
    
    
    6,901,085Allowances
    
    
    (3
    )
    
    
    (44
    )Total government and private securities
    
    
    7,030,074
    
    
    
    6,901,041
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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 10
    
    
    Withoutyear
    
    
    years
    
    
    years
    
    
    years
    
    
    due date
    
    
    TotalBook valueGOVERNMENT SECURITIESHoldings for trading or financial intermediationIn pesos:
    
    
    7,226
    
    
    
    232,631
    
    
    
    15,335
    
    
    
    7,837
    
    
    
    
    
    
    
    263,029Federal Government bonds at Badlar + 2.75%  Maturity 2014
    
    
    
    
    
    
    200,925
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    200,925Secured bonds Decree 1,579/02 at 2%  Maturity 2018
    
    
    4,216
    
    
    
    21,759
    
    
    
    15,013
    
    
    
    
    
    
    
    
    
    
    
    40,988Consolidation bonds at 2%  Sixth series  Maturity 2024
    
    
    
    
    
    
    112
    
    
    
    322
    
    
    
    211
    
    
    
    
    
    
    
    645Discount bonds at 5.83%  Maturity 2033
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,956
    
    
    
    
    
    
    
    6,956Consolidation bonds of social security payables at 2%  Maturity 2014
    
    
    2,054
    
    
    
    4,975
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,029Federal Government bonds at 2%  Maturity 2014
    
    
    919
    
    
    
    2,755
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,674Federal Government bonds at 10.50%  Maturity 2012
    
    
    
    
    
    
    1,059
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,059Federal Government bonds at Badlar + 3%  Maturity 2015
    
    
    
    
    
    
    901
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    901Par bonds at variable rate  Maturity 2038
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    519
    
    
    
    
    
    
    
    519GDP  Related Securities  Maturity 2035
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    54
    
    
    
    
    
    
    
    54Others
    
    
    37
    
    
    
    145
    
    
    
    
    
    
    
    97
    
    
    
    
    
    
    
    279Holdings for trading or financial intermediationIn foreign currency:
    
    
    220,404
    
    
    
    23,616
    
    
    
    1,058
    
    
    
    21
    
    
    
    
    
    
    
    245,099Treasury Bill  Maturity 2011
    
    
    198,790
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    198,790Federal Government bonds at Libor  Maturity 2012
    
    
    21,233
    
    
    
    21,233
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    42,466Federal Government bonds at 7%  Maturity 2015
    
    
    
    
    
    
    1,640
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,640Federal Government bonds at Libor  Maturity 2013
    
    
    371
    
    
    
    742
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,113Federal Government bonds at 7%  Maturity 2017
    
    
    
    
    
    
    
    
    
    
    1,026
    
    
    
    
    
    
    
    
    
    
    
    1,026Others
    
    
    10
    
    
    
    1
    
    
    
    32
    
    
    
    21
    
    
    
    
    
    
    
    64Unlisted government securitiesIn pesos:
    
    
    102,328
    
    
    
    52,196
    
    
    
    573
    
    
    
    
    
    
    
    3
    
    
    
    155,100Province of Buenos Aires treasury bills at 168 days  Maturity 2011
    
    
    50,084
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    50,084Province of Buenos Aires treasury bills in pesos at 84 days Maturity 2011
    
    
    49,575
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    49,575Federal Government bonds at Badlar + 3.50%  Maturity 2013
    
    
    
    
    
    
    46,350
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    46,350Federal Government bonds at variable rate  Maturity 2013
    
    
    2,508
    
    
    
    5,015
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,523Province of Tucumán bonds at 2%  Maturity 2018
    
    
    161
    
    
    
    831
    
    
    
    573
    
    
    
    
    
    
    
    
    
    
    
    1,565Others
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    3Unlisted government securitiesIn foreign currency:
    
    
    2,991
    
    
    
    11,963
    
    
    
    4,999
    
    
    
    
    
    
    
    
    
    
    
    19,953Province of Córdoba Debt Securities at 12%  Maturity 2017
    
    
    2,500
    
    
    
    9,999
    
    
    
    4,999
    
    
    
    
    
    
    
    
    
    
    
    17,498Province of Tucumán bonds at Libor  Maturity 2015
    
    
    491
    
    
    
    1,964
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,455Instruments issued by the Central Bank of Argentina  In pesos:
    
    
    3,849,293
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,849,293Unlisted Central Bank bills and notes (Lebacs/Nobacs)
    
    
    3,167,344
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,167,344Listed Central Bank bills and notes (Lebacs/Nobacs)
    
    
    681,949
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    681,949
  F - 46




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 MaturingAfter 5After 1 year
    
    
    years butWithin 1
    
    
    but within
    
    
    within 10
    
    
    After 10
    
    
    Withoutyear
    
    
    5 years
    
    
    years
    
    
    years
    
    
    due date
    
    
    TotalBook ValueSecurities under repurchase agreement
    
    
    180,927
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    180,927In pesos:Unlisted Central Bank bills and notes (Lebacs /
Nobacs)
    
    
    148,959
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    148,959Consolidation bonds at 2%  Sixth series  Maturity 2024
    
    
    18,518
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,518Listed Central Bank bills and notes (Lebacs/
Nobacs)
    
    
    7,514
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,514Discount bonds at 5.83%  Maturity 2033
    
    
    4,797
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,797Federal Government bonds at Badlar + 2.75%  Maturity 2014
    
    
    990
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    990GDP  Related Securities  Maturity 2035
    
    
    149
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    149Securities under repurchase agreement
    
    
    2,299,088
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,299,088In foreign currency:Federal Government bonds at 7%  Maturity 2013
    
    
    2,299,088
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,299,088Total government securities
    
    
    6,662,257
    
    
    
    320,406
    
    
    
    21,965
    
    
    
    7,858
    
    
    
    3
    
    
    
    7,012,489PRIVATE SECURITIESInvestments in listed private securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,588
    
    
    
    17,588In foreign currency:Shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,588
    
    
    
    17,588Total private securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,588
    
    
    
    17,588Total government and private securities,
before allowances
    
    
    6,662,257
    
    
    
    320,406
    
    
    
    21,965
    
    
    
    7,858
    
    
    
    17,591
    
    
    
    7,030,077Allowances
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3
    )Total government and private securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,030,074
  F - 47




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 21.
    
    LOANS
 Description of certain categories of loans in the accompanying Balance Sheets include:
 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.
 The classification of the loan portfolio in this regard was as follows:
 As of December 31,Description
    
    2010
    
    
    2009Non-financial government sector
    
    
    336,430
    
    
    
    206,484Financial sector
    
    
    155,701
    
    
    
    90,916Non-financial private sector and foreign residentsCommercial- With Senior A guarantees
    
    
    320,399
    
    
    
    226,381- With Senior B guarantees
    
    
    869,936
    
    
    
    570,170- Without Senior guarantees
    
    
    5,502,813
    
    
    
    3,860,755Consumer- With Senior A guarantees
    
    
    29,149
    
    
    
    27,932- With Senior B guarantees
    
    
    673,329
    
    
    
    669,081- Without Senior guarantees
    
    
    8,537,256
    
    
    
    5,893,133Less: Allowance
    
    
    (514,910
    )
    
    
    (448,045
    )Total loans, net of allowance
    
    
    15,910,103
    
    
    
    11,096,807
 Senior A guarantees consist mainly of cash guarantees, gold guarantees, warrants over primary
products and other forms of self-liquidating collateral.
 Senior B guarantees generally consist of mortgages and other forms of collateral pledged to
secure the loan amount.
 Without senior guarantees consist, in general, of unsecured third-party guarantees.
 A breakdown of total loans by geographical location of borrowers is as follows:
 Geographical location
    
    2010
    
    
    2009Argentina
    
    
    16,422,685
    
    
    
    11,523,838Uruguay
    
    
    1,316
    
    
    
    8Brasil
    
    
    997
    
    
    
    France
    
    
    8
    
    
    
    8Chile
    
    
    6
    
    
    
    11Spain
    
    
    1
    
    
    
    127United States of America
    
    
    
    
    
    
    10,875England
    
    
    
    
    
    
    7,500Australia
    
    
    
    
    
    
    2,095Venezuela
    
    
    
    
    
    
    388Paraguay
    
    
    
    
    
    
    2Less: Allowance
    
    
    (514,910
    )
    
    
    (448,045
    )Total loans, net of allowances
    
    
    15,910,103
    
    
    
    11,096,807
  F - 48




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 A breakdown of total loans by sector activity classified according to the principal business of
the borrowers is as follows:
 Economic Activity
    
    2010
    
    
    2009Retail loans
    
    
    6,512,629
    
    
    
    4,403,933Agricultural livestock- Forestry-Fishing- Mining  Hunting
    
    
    2,286,297
    
    
    
    1,910,164Construction
    
    
    1,009,744
    
    
    
    1,112,702Other services
    
    
    1,281,916
    
    
    
    858,936Retail and consumer products
    
    
    1,140,019
    
    
    
    747,897Foodstuff and beverages
    
    
    917,874
    
    
    
    637,814Transportation, storage and communications
    
    
    488,356
    
    
    
    190,796Chemicals
    
    
    455,313
    
    
    
    129,145Governmental services
    
    
    418,026
    
    
    
    258,784Financial Services
    
    
    387,074
    
    
    
    290,331Real estate, business and leases
    
    
    357,865
    
    
    
    236,555Manufacturing and wholesale
    
    
    302,927
    
    
    
    140,620Electricity, oil, water
    
    
    92,475
    
    
    
    75,095Hotels and restaurants
    
    
    27,866
    
    
    
    29,949Others
    
    
    746,632
    
    
    
    522,131Total loans
    
    
    16,425,013
    
    
    
    11,544,852Less: Allowance
    
    
    (514,910
    )
    
    
    (448,045
    )Total loans, net of Allowance
    
    
    15,910,103
    
    
    
    11,096,807
 22.
    
    OTHER RECEIVABLES AND PAYABLES FROM FINANCIAL INTERMEDIATION
 The breakdown of Other receivables from financial intermediation by guarantee type is as
follows:
 As of December 31,Description
    
    2010
    
    
    2009With preferred guarantees
    
    
    2,398,732
    
    
    
    1,056,919Without preferred guarantees
    
    
    1,438,078
    
    
    
    1,607,595Allowances
    
    
    (237,513
    )
    
    
    (231,219
    )3,599,297
    
    
    
    2,433,295
 The breakdown of private securities recorded in Other receivables from financial intermediation
is as follows:
 As of December 31,Description
    
    2010
    
    
    2009Corporate bonds  Unlisted (1)
    
    
    279,306
    
    
    
    123,793Certificates of participation in financial trusts  Unlisted (1)
    
    
    351,683
    
    
    
    390,164Debt securities in financial trusts  Unlisted
    
    
    260,459
    
    
    
    206,787Total investments in unlisted private securities
    
    
    891,448
    
    
    
    720,744
 (1)
    
    As of December 31, 2010 and 2009, the Bank booked allowances for impairment in value
amounting to 234,187 and 225,210, respectively (see also note 25).
  F - 49




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31, 2010, maturities for the private securities disclosed above are as follows:
 After 1
    
    
    After 5year but
    
    
    years butWithin 1
    
    
    within 5
    
    
    within 10
    
    
    After 10
    
    
    Withoutyear
    
    
    years
    
    
    years
    
    
    years
    
    
    due date
    
    
    TotalCorporate bonds Unlisted
    
    
    7,344
    
    
    
    224,538
    
    
    
    47,233
    
    
    
    
    
    
    
    191
    
    
    
    279,306Certificates of participation in financial trusts Unlisted
    
    
    4,395
    
    
    
    114,350
    
    
    
    
    
    
    
    8,851
    
    
    
    224,087
    (1)
    
    
    351,683Debt securities in financial trusts Unlisted
    
    
    154,839
    
    
    
    91,476
    
    
    
    14,144
    
    
    
    
    
    
    
    
    
    
    
    260,459Total investments in unlisted private securities
    
    
    166,578
    
    
    
    430,364
    
    
    
    61,377
    
    
    
    8,851
    
    
    
    224,278
    
    
    
    891,448
 (1)
    
    As of December 31, 2010 the Bank booked allowances for impairment in value amounting to
231,184.
 The Bank enters into forward transactions related to government securities and foreign
currencies. The Bank recognizes cash, security or currency amount to be exchanged in the future
as a receivable and payable at the original transaction date. The assets and liabilities related
to such transactions are as follows:
 As of December 31,Description
    
    2010
    
    
    2009Amounts receivable from spot and forward sales pending settlementReceivables from repurchase agreements of government securities
    
    
    177,583
    
    
    
    14,657Receivable from spot sales of government and private securities pending settlement
    
    
    38,734
    
    
    
    21,651Receivables from spot sales of foreign currency settlement
    
    
    32,397
    
    
    
    734248,714
    
    
    
    37,042Securities and foreign currency receivable from spot and forward purchases pending settlementSpot purchases of foreign currency pending settlement
    
    
    32,439
    
    
    
    734Spot purchases of government and private securities pending settlement
    
    
    11,917
    
    
    
    1,608Forward purchases of securities under repurchase agreements
    
    
    990
    
    
    
    521,159Other spot purchases
    
    
    32,221
    
    
    
    13,05977,567
    
    
    
    536,560Amounts payable for spot and forward purchases pending settlementPayables for spot purchases of government securities pending settlement
    
    
    36,674
    
    
    
    14,552Payables for spot purchases of foreign currency pending settlement and forward purchases of foreign currency
    
    
    32,381
    
    
    
    734Payables under repo transactions
    
    
    23,653
    
    
    
    8,362Payables for forward purchases of securities under repurchase agreements
    
    
    901
    
    
    
    468,53593,609
    
    
    
    492,183Securities and foreign currency to be delivered under spot and forward sales pending settlementForward sales of government securities under repurchase agreements
    
    
    2,480,124
    
    
    
    1,060,887Spot sales of government and private securities pending settlement
    
    
    49,186
    
    
    
    14,430Forward sales of foreign currency pending settlement
    
    
    32,430
    
    
    
    7302,561,740
    
    
    
    1,076,047
  F - 50




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 These instruments consist of foreign currency and securities contracts (spot and forward
purchases and sales), whose valuation method is disclosed in note 4.4.h). The fair value of
these instruments was:
 End-of-year fair valueDescription
    
    2010
    
    
    2009Assets
    
    
    74,228
    
    
    
    535,160Liabilities
    
    
    2,529,901
    
    
    
    1,028,014
 Premiums on these instruments have been included in the Financial income and Financial
expense captions of the consolidated statement of income of each year.
 23.
    
    BANK PREMISES AND EQUIPMENT AND OTHER ASSETS
 23.1
    
    Premises and EquipmentThe major categories of the Banks premises and equipment, and related accumulated
depreciation are presented in the following table:
 As of December, 31Estimateduseful lifeDescription
    
    (years)
    
    
    2010
    
    
    2009Buildings
    
    
    50
    
    
    
    410,710
    
    
    
    396,024Furniture and facilities
    
    
    10
    
    
    
    112,624
    
    
    
    98,332Machinery and equipment
    
    
    5
    
    
    
    408,087
    
    
    
    366,355Vehicles
    
    
    5
    
    
    
    37,428
    
    
    
    34,192Other
    
    
    
    
    
    
    1,408
    
    
    
    1,552Accumulated depreciation
    
    
    
    
    
    
    (524,726
    )
    
    
    (462,830
    )Total
    
    
    
    
    
    
    445,531
    
    
    
    433,625
  23.2
    
    Other assets
  As of December, 31Estimateduseful lifeDescription
    
    (years)
    
    
    2010
    
    
    2009Works in progress
    
    
    
    
    
    
    36,955
    
    
    
    15,531Works of art
    
    
    
    
    
    
    1,235
    
    
    
    1,213Prepayments for the purchase of assets
    
    
    
    
    
    
    57,862
    
    
    
    1,335Foreclosed assets
    
    
    50
    
    
    
    13,199
    
    
    
    19,498Leased buildings
    
    
    50
    
    
    
    3,893
    
    
    
    4,543Stationery and office supplies
    
    
    
    
    
    
    4,055
    
    
    
    3,347Other assets (1)
    
    
    50
    
    
    
    78,385
    
    
    
    82,141Accumulated depreciation
    
    
    
    
    
    
    (14,328
    )
    
    
    (13,266
    )Total
    
    
    
    
    
    
    181,256
    
    
    
    114,342
 (1)
    
    Mainly includes buildings acquired by attachment in aide of execution, which
under Central Bank rules are included in this line after a period of six months from
the acquisition.
   F - 51




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 23.3
    
    Operating Leases
   Fiscal year end
    
    Amounts2011
    
    
    27,2702012
    
    
    18,6992013
    
    
    12,2072014
    
    
    8,1552015
    
    
    4,6262016 and after
    
    
    4,680Total
    
    
    75,637
  24.
    
    INTANGIBLE ASSETS
 24.1.
    
    Goodwill:
  As of December 31,Estimateduseful lifeDescription
    
    (years)
    
    
    2010
    
    
    2009Goodwill for the purchase of Banco
del Tucumán S.A., net of accumulated
amortization of 8,503 as of December
31, 2010 (a)
    
    
    10
    
    
    
    9,740
    
    
    
    11,567Goodwill for the purchase of Nuevo
Banco Bisel S.A., net of accumulated
amortization of 29,169 as of December
31, 2010 (b)
    
    
    10
    
    
    
    36,874
    
    
    
    43,478Goodwill for the purchase of Banco
Privado de Inversiones S.A., net of
accumulated amortization of 1,873 as
of December 31, 2010 (c)
    
    
    10
    
    
    
    54,331
    
    
    
    Total
    
    
    
    
    
    
    100,945
    
    
    
    55,045
 (a)
    
    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.
  F - 52




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 (b)
    
    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. See also note 3.6.
 (c)
    
    On September 22, 2010, the Bank acquired 100% of the capital stock of Banco
Privado de Inversiones in the amount of USD 23.3 million, out of which, USD 10.4
million is related to a guaranteed amount, as provided in the purchase agreement. The
assets transferred amounted to 403,686 and the liabilities assumed amounted to
368,034.
 Under Central Bank rules, as a result of the acquisition, the Bank booked a positive
goodwill amounting to 56,205, which is amortized in ten years and no impairment is
required.
  24.2.
    
    Organization and development costs:As of December 31, 2010 and 2009, the organization and development costs breakdown is as
follows:
 As of December 31,Estimateduseful lifeDescription
    
    (years)
    
    
    2010
    
    
    2009Differences due to courts orders  deposits dollarizations (a)
    
    
    5
    
    
    
    54,680
    
    
    
    50,532Cost from information technology projects (b)
    
    
    5
    
    
    
    100,937
    
    
    
    78,158Organizational cost (c)
    
    
    5
    
    
    
    2,602
    
    
    
    8,001Other capitalized cost
    
    
    5
    
    
    
    38,133
    
    
    
    18,838Total
    
    
    
    
    
    
    196,352
    
    
    
    155,529
 (a)
    
    Under Central Bank rules, the Bank records exchange differences related
to payments and provisions made by the Bank in relation to the constitutional
protection and court judgments resulting from court decisions mentioned in Note
4.4.l.2.(b)
    
    Under Central Bank rules, the Bank records as expense software cost
relating to preliminary application development and post-implementation stages of
software development.(c)
    
    Under Central Bank rules, the Bank records cost inherent to the set up
and organization of the Bank.
   Fiscal year ended December 31,2010
    
    
    2009
    
    
    2008Balance at the beginning of the fiscal year
    
    
    210,574
    
    
    
    198,546
    
    
    
    199,963Additions
    
    
    157,940
    
    
    
    74,867
    
    
    
    62,096Decreases
    
    
    (164
    )
    
    
    (457
    )
    
    
    (8
    )Amortization expense (1)
    
    
    (71,053
    )
    
    
    (62,382
    )
    
    
    (63,505
    )Balance at the end of the fiscal year
    
    
    297,297
    
    
    
    210,574
    
    
    
    198,546
 (1)
    
    See Note 28.
  F - 53




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 25.
    
    ALLOWANCES AND PROVISIONS
 The Bank had recorded allowances and provisions for:
 Government and private securities: recorded to cover possible impairment risk arising out of
government securities.
 Loans: recorded in
compliance with the provision of Communique A 2950, as supplemented,
of the Central Bank, taking into account Notes 4.4.f).
 Other receivables from financial intermediation: recorded in compliance with the provision of
Communique A 2950, as supplemented, of the Central Bank, taking into account Notes 4.4.f)
and 4.4.h.4).
 Receivables from financial leases: recorded in compliance with the provision of Communique
A 2950, as supplemented, of the Central Bank, taking into account Note 4.4.f).
 Investment in other companies: recorded to cover possible impairment risk arising from
investments in other companies.
 Other receivables: recorded to cover collectibility risks of other receivables.
 Granted guarantees: recorded under Central Banks rules to cover contingent losses related to
loan commitments. These amounts have been accrued in accordance with Central Banks rules,
which are similar to FASB ASC 450 Contingencies.
 Negative goodwill: recorded to cover the difference between the purchase price and the book
value of the net equity acquired of Banco Bansud S.A. and Nuevo Banco Suquía S.A.
 Other loss contingencies: mainly includes labor litigation and customer and other third-party
claims. The amounts have been accrued in accordance with Central Banks rules, which are
similar to FASB ASC 450 Contingencies.
 Difference from court deposit dollarization: recorded under Central Banks rules to cover the
difference form court deposit dollarization (see Note 2.).
 As of December 31, 2010Balance at
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance atthe beginning
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    the end ofof the fiscal
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    the fiscalyear
    
    
    Provision
    
    
    Reversals
    
    
    Charge off
    
    
    yearAllowances- Government and private securities
    
    
    44
    
    
    
    6
    
    
    
    (47
    )
    
    
    
    
    
    
    3- Loans
    
    
    448,045
    
    
    
    254,010
    (a)(b)
    
    
    (28,747
    )(b)
    
    
    (158,398
    )
    
    
    514,910
    (c)- Other receivables from financial intermediation
    
    
    231,219
    
    
    
    11,756
    
    
    
    (3,458
    )
    
    
    (2,004
    )
    
    
    237,513- Receivables from financial leases
    
    
    3,649
    
    
    
    3,298
    
    
    
    (926
    )
    
    
    
    
    
    
    6,021- Investment in other companies
    
    
    1,497
    
    
    
    277
    
    
    
    (98
    )
    
    
    
    
    
    
    1,676- Other receivables
    
    
    13,980
    
    
    
    3,881
    
    
    
    (981
    )
    
    
    (351
    )
    
    
    16,529Total of allowances
    
    
    698,434
    
    
    
    273,228
    
    
    
    (34,257
    )
    
    
    (160,753
    )
    
    
    776,652Provisions- Granted guarantees
    
    
    966
    
    
    
    
    
    
    
    (182
    )
    
    
    
    
    
    
    784- Negative goodwill
    
    
    483
    
    
    
    
    
    
    
    (483
    )
    
    
    
    
    
    
    - Other loss contingencies
    
    
    66,847
    
    
    
    34,492
    (d)
    
    
    (509
    )
    
    
    (10,257
    )
    
    
    90,573- Difference from court deposit dollarization
    
    
    19,979
    
    
    
    2,194
    
    
    
    (87
    )
    
    
    (7,613
    )
    
    
    14,473Total of provisions
    
    
    88,275
    
    
    
    36,686
    
    
    
    (1,261
    )
    
    
    (17,870
    )
    
    
    105,830
  F - 54




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31, 2009Balance atthe beginning
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance at theof the fiscal
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    end of theyear
    
    
    Provision
    
    
    Reversals
    
    
    Charge off
    
    
    fiscal yearAllowances- Government and private securities
    
    
    27
    
    
    
    28
    
    
    
    (11
    )
    
    
    
    
    
    
    44- Loans
    
    
    438,348
    
    
    
    187,648
    
    
    
    (2,596
    )
    
    
    (175,355
    )
    
    
    448,045- Other receivables from financial intermediation
    
    
    228,588
    
    
    
    4,202
    
    
    
    (68
    )
    
    
    (1,503
    )
    
    
    231,219- Receivables from financial leases
    
    
    5,391
    
    
    
    138
    
    
    
    (1,878
    )
    
    
    (2
    )
    
    
    3,649- Investment in other companies
    
    
    247
    
    
    
    1,266
    
    
    
    (16
    )
    
    
    
    
    
    
    1,497- Other receivables
    
    
    15,838
    
    
    
    2,477
    
    
    
    (1,914
    )
    
    
    (2,421
    )
    
    
    13,980Total of allowances
    
    
    688,439
    
    
    
    195,759
    
    
    
    (6,483
    )
    
    
    (179,281
    )
    
    
    698,434Provisions- Granted guarantees
    
    
    1,523
    
    
    
    24
    
    
    
    (581
    )
    
    
    
    
    
    
    966- Negative goodwill
    
    
    483
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    483- Other loss contingencies
    
    
    62,765
    
    
    
    17,114
    
    
    
    (2,069
    )
    
    
    (10,963
    )
    
    
    66,847- Difference from court deposit dollarization
    
    
    18,233
    
    
    
    1,746
    
    
    
    
    
    
    
    
    
    
    
    19,979Total of provisions
    
    
    83,004
    
    
    
    18,884
    
    
    
    (2,650
    )
    
    
    (10,963
    )
    
    
    88,275
 As of December 31, 2008Balance atthe beginning
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance at theof the fiscal
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    end of theyear
    
    
    Provision
    
    
    Reversals
    
    
    Charge off
    
    

fiscal yearAllowances- Government and private securities
    
    
    27
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27- Loans
    
    
    220,422
    
    
    
    314,532
    
    
    
    (20,360
    )
    
    
    (76,246
    )
    
    
    438,348- Other receivables from financial
intermediation
    
    
    206,939
    
    
    
    24,099
    
    
    
    (1,689
    )
    
    
    (761
    )
    
    
    228,588- Receivables from financial leases
    
    
    4,898
    
    
    
    614
    
    
    
    (121
    )
    
    
    
    
    
    
    5,391- Investment in other companies
    
    
    697
    
    
    
    45
    
    
    
    (8
    )
    
    
    (487
    )
    
    
    247- Other receivables
    
    
    27,034
    
    
    
    7,332
    
    
    
    (517
    )
    
    
    (18,011
    )
    
    
    15,838Total of allowances
    
    
    460,017
    
    
    
    346,622
    
    
    
    (22,695
    )
    
    
    (95,505
    )
    
    
    688,439Provisions- Granted guarantees
    
    
    1,660
    
    
    
    40
    
    
    
    (177
    )
    
    
    
    
    
    
    1,523- Negative goodwill
    
    
    483
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    483- Other loss contingencies
    
    
    78,044
    
    
    
    28,792
    
    
    
    (21,385
    )
    
    
    (22,686
    )
    
    
    62,765- Difference from court deposit dollarization
    
    
    21,146
    
    
    
    1,864
    
    
    
    
    
    
    
    (4,777
    )
    
    
    18,233Total of provisions
    
    
    101,333
    
    
    
    30,696
    
    
    
    (21,562
    )
    
    
    (27,463
    )
    
    
    83,004
 (a)
    
    As of December 31, 2010, 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 Receivables from financial leases, mainly, net of the related
allowances for loan losses from acquisition of Banco Privado de Inversiones S.A.(b)
    
    As of December 31, 2010 the amount of Provisions for loan loss, net disclosed in Note 28.,
under US SEC Regulation S-X, includes above amounts and provision and reversals of
Receivables from financial leases disclosed in Note 27, mainly, net of those related to
Recovered loans.(c)
    
    As of December 31, 2010, as disclosed in Note 28, under SEC requirements Regulation S-X, the
amount of Allowance for loan losses includes the allowance for Receivables from financial
leases.(d)
    
    As of December 31, 2010, the amount of Provision for losses on other receivables and other
allowances disclosed in the Statement of Income, mainly includes above amounts net of
expenses related to contingent liabilities for probable claims, lawsuit and other proceeding,
including those related to labor and other obligations.
  F - 55




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 26.
    
    DEPOSITS AND OTHER LIABILITIES FROM FINANCIAL INTERMEDIATION
 26.1
    
    Deposits
  26.2
    
    Central Bank of Argentina
  As of December 31, 2010
    
    
    As of December 31, 2009Interest and
    
    
    
    
    
    
    
    
    
    
    Interest andCER
    
    
    
    
    
    
    
    
    
    
    CERPrincipal
    
    
    adjustments
    
    
    Rate
    
    
    Principal
    
    
    adjustments
    
    
    RateShortterm liabilities
    
    
    1,447
    
    
    
    5
    
    
    
    0.01
    %
    
    
    1,363
    
    
    
    
    
    
    
    Longterm liabilities
    
    
    415
    
    
    
    10
    
    
    
    0.08
    %
    
    
    518
    
    
    
    16
    
    
    
    0.08
    %Total
    
    
    1,862
    
    
    
    15
    
    
    
    
    
    
    
    1,881
    
    
    
    16
  26.3
    
    Banks and international institutions
  As of December 31, 2010
    
    
    As of December 31, 2009Principal
    
    
    Interest
    
    
    Rate
    
    
    Principal
    
    
    Interest
    
    
    RateShortterm liabilities
    
    
    45,506
    
    
    
    191
    
    
    
    1.89
    %
    
    
    219,743
    
    
    
    7,471
    
    
    
    7.78
    %Total
    
    
    45,506
    
    
    
    191
    
    
    
    
    
    
    
    219,743
    
    
    
    7,471
  26.4
    
    Financing received from Argentine financial institutions
  As of December 31, 2010
    
    
    As of December 31, 2009Principal
    
    
    Interest
    
    
    Rate
    
    
    Principal
    
    
    Interest
    
    
    RateShortterm liabilities
    
    
    31,845
    
    
    
    3,048
    
    
    
    9.14
    %
    
    
    146,679
    
    
    
    2,443
    
    
    
    9.45
    %Longterm liabilities
    
    
    15,501
    
    
    
    25,243
    
    
    
    2.00
    %
    
    
    17,278
    
    
    
    23,571
    
    
    
    2.00
    %Total
    
    
    47,346
    
    
    
    28,291
    
    
    
    
    
    
    
    163,957
    
    
    
    26,014
   F - 56




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  Periods
    
    As of
 December 31, 
20102012
    
    
    4,6712013
    
    
    4,6712014
    
    
    7,1362015
    
    
    7,6302016
    
    
    7,6302017
    
    
    7,6302018
    
    
    1,37640,744
 26.5
    
    OthersThe rest of liabilities included in Others liabilities from financial intermediation
are liabilities assumed for the Bank, mainly related to operating banking activities.
 As of December 31, 2010
    
    
    As of December 31, 2009Principal
    
    
    Interest
    
    
    Rate
    
    
    Principal
    
    
    Interest
    
    
    RateShortterm liabilities (1)
    
    
    1,093,289
    
    
    
    19
    
    
    
    0.01
    %
    
    
    652,241
    
    
    
    89
    
    
    
    0.02
    %Longterm liabilities (2)
    
    
    80,584
    
    
    
    1,214
    
    
    
    3.98
    %
    
    
    80,445
    
    
    
    1,168
    
    
    
    3.96
    %Total
    
    
    1,173,873
    
    
    
    1,233
    
    
    
    
    
    
    
    732,686
    
    
    
    1,257
 (1)
    
    Includes mainly pending settlement transactions and payment account.(2)
    
    Includes the liability assumed with SEDESA related to the acquisition of
preferred shares of former Nuevo Banco Bisel S.A. in the amount of 77,500 and 74,519
as of December 31, 2010 and 2009, respectively (see Note 7.1.e)).
   27.
    
    EMPLOYEE BENEFIT PLANS
 The Bank does not maintain pension plans for its personnel. The Bank is required to pay
employer contributions, determined on the basis of total monthly payroll.
 These expenses aggregated 183,831, 142,440 and 110,170 for the fiscal years ended December 31,
2010, 2009 and 2008, respectively, and are included in the Administrative expensesPersonnel
expenses account.
 28.
    
    CONSOLIDATED INCOME STATEMENTS AND BALANCE SHEET
 The presentation of consolidated financial statements under Central Banks rules differs
significantly from the format required by the U.S. SEC under Rules 9-03 and 9-04 of Regulation
S-X (Article 9). The following consolidated financial statements were restated into constant
pesos, as explained in Note 4.3. These consolidated financial statements were prepared using
the measurement methods provided by Central Bank, but under US SEC requirements:
 Consolidated Statements of Income
    
    2010
    
    
    2009 (1)
    
    
    2008 (1)Interest and fees on loans
    
    
    2,627,497
    
    
    
    2,343,185
    
    
    
    2,105,895Interest on bearing deposits with other banks
    
    
    275
    
    
    
    363
    
    
    
    7,010Interest on other receivables from financial intermediation
    
    
    46,654
    
    
    
    43,825
    
    
    
    174,038Interest on securities and foreign exchange purchased under resale agreements
    
    
    33,839
    
    
    
    63,167
    
    
    
    28,010Securities gains, net
    
    
    949,055
    
    
    
    1,321,130
    
    
    
    569,095
  F - 57




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Consolidated Statements of Income
    
    2010
    
    

2009 (1)
    
    

2008 (1)Other interest income
    
    
    38,396
    
    
    
    33,653
    
    
    
    23,166Total interest income
    
    
    3,695,716
    
    
    
    3,805,323
    
    
    
    2,907,214Interest on deposits
    
    
    979,919
    
    
    
    1,181,701
    
    
    
    970,072Interest on securities and foreign exchange purchased under resale agreements
    
    
    5,281
    
    
    
    2,314
    
    
    
    5,723Interest on short-term borrowings
    
    
    31,843
    
    
    
    37,631
    
    
    
    29,227Interest on long-term debt
    
    
    97,671
    
    
    
    106,278
    
    
    
    150,457Other interest expense
    
    
    255,566
    
    
    
    206,122
    
    
    
    160,487Total interest expense
    
    
    1,370,280
    
    
    
    1,534,046
    
    
    
    1,315,966Net interest income
    
    
    2,325,436
    
    
    
    2,271,277
    
    
    
    1,591,248Provision for loan losses, net
    
    
    (149,430
    )
    
    
    (154,397
    )
    
    
    (226,705
    )Net interest income after provision for loan losses
    
    
    2,176,006
    
    
    
    2,116,880
    
    
    
    1,364,543Service charges on deposit accounts and other fees
    
    
    811,190
    
    
    
    663,000
    
    
    
    570,968Credit-card service charges and fees
    
    
    197,818
    
    
    
    158,418
    
    
    
    153,413Other commissions
    
    
    34,779
    
    
    
    23,365
    
    
    
    19,557Foreign currency exchange trading income
    
    
    28,358
    
    
    
    26,682
    
    
    
    19,261Income from equity in other companies
    
    
    24,654
    
    
    
    14,953
    
    
    
    32,986Foreign exchange, net
    
    
    153,134
    
    
    
    133,731
    
    
    
    143,094Other
    
    
    199,642
    
    
    
    140,430
    
    
    
    119,576Total non-interest income
    
    
    1,449,575
    
    
    
    1,160,579
    
    
    
    1,058,855Commissions
    
    
    81,464
    
    
    
    61,620
    
    
    
    57,077Salaries and payroll taxes
    
    
    1,224,207
    
    
    
    963,889
    
    
    
    796,129Outside consultants and services
    
    
    79,564
    
    
    
    64,436
    
    
    
    54,375Depreciation of bank premises and equipment
    
    
    60,006
    
    
    
    55,255
    
    
    
    51,499Rent
    
    
    40,367
    
    
    
    34,554
    
    
    
    21,685Stationery and supplies
    
    
    9,913
    
    
    
    11,472
    
    
    
    15,050Electric power and communications
    
    
    48,183
    
    
    
    45,747
    
    
    
    37,004Advertising and publicity
    
    
    64,017
    
    
    
    46,861
    
    
    
    53,178Taxes
    
    
    105,521
    
    
    
    79,444
    
    
    
    70,702Directors and Statutory Audits fee
    
    
    59,391
    
    
    
    36,413
    
    
    
    26,941Insurance
    
    
    9,882
    
    
    
    7,313
    
    
    
    6,073Security services
    
    
    61,186
    
    
    
    47,668
    
    
    
    42,241Maintenance, conservation and repair expenses
    
    
    78,647
    
    
    
    68,006
    
    
    
    47,743Amortization of organization and development expenses (2)
    
    
    71,026
    
    
    
    62,151
    
    
    
    63,210Provision for losses on other receivables and other allowances (3)
    
    
    32,517
    
    
    
    21,275
    
    
    
    37,242Other
    
    
    210,514
    
    
    
    255,083
    
    
    
    118,638Total non-interest expense
    
    
    2,236,405
    
    
    
    1,861,187
    
    
    
    1,498,787Income before income tax expense
    
    
    1,389,176
    
    
    
    1,416,272
    
    
    
    924,611Income tax expense
    
    
    371,878
    
    
    
    659,250
    
    
    
    261,207Income from continuing operations
    
    
    1,017,298
    
    
    
    757,022
    
    
    
    663,404Net income
    
    
    1,017,298
    
    
    
    757,022
    
    
    
    663,404Net income attributable to the noncontrolling interest
    
    
    6,868
    
    
    
    5,092
    
    
    
    3,354Net income attributable to the controlling interest
    
    
    1,010,430
    
    
    
    751,930
    
    
    
    660,050Earnings per common share
    
    
    1.70
    
    
    
    1.26
    
    
    
    1.00
 (1)
    
    See Note 4.2.(2)
    
    See Notes 24 and 32.5.(3)
    
    See Note 25.
  F - 58




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Central Bank rules also require certain classifications of assets and liabilities, which are
different from those required by Article 9. The following table discloses the Banks
consolidated balance sheets as of December 31, 2010, and 2009, as if the Bank followed the
balance sheet disclosure requirements under Article 9:
 2010
    
    
    2009 (1)ASSETSCash and cash equivalent
    
    
    4,005,929
    
    
    
    4,298,395Interest-bearing deposits in other banks
    
    
    269,155
    
    
    
    363,041Federal Funds sold and securities purchased under resale agreements of similar arrangements
    
    
    2,436,328
    
    
    
    1,056,940Trading account assets
    
    
    142,825
    
    
    
    85,709Investment securities available for sale
    
    
    4,632,956
    
    
    
    6,018,960Loans
    
    
    16,732,999
    
    
    
    11,924,322Allowance for loan losses
    
    
    (520,931
    )
    
    
    (451,693
    )Premises and equipment
    
    
    626,606
    
    
    
    775,962Due from customers on acceptances
    
    
    220,855
    
    
    
    381,501Other assets
    
    
    1,525,804
    
    
    
    1,057,034Total assets
    
    
    30,072,526
    
    
    
    25,510,171LIABILITIES AND SHAREHOLDERS EQUITYInterest-bearing deposits
    
    
    16,777,893
    
    
    
    14,502,258Non interest-bearing deposits
    
    
    5,469,561
    
    
    
    3,354,322Federal Funds purchased and securities sold under repurchase agreements
    
    
    24,664
    
    
    
    476,912Other short-term borrowings
    
    
    1,191,743
    
    
    
    1,045,748Long-term borrowings
    
    
    743,038
    
    
    
    724,012Contingent liabilities
    
    
    105,830
    
    
    
    87,172Other liabilities
    
    
    760,131
    
    
    
    986,288Bank acceptances outstanding
    
    
    220,855
    
    
    
    381,501Subordinated corporate bonds
    
    
    598,470
    
    
    
    572,473Total liabilities
    
    
    25,892,185
    
    
    
    22,130,686Common stocks
    
    
    594,485
    
    
    
    594,485Retained appropriated earnings
    
    
    764,351
    
    
    
    613,964Retained unappropriated earnings
    
    
    2,390,745
    
    
    
    1,747,091Other shareholders equity
    
    
    403,261
    
    
    
    403,261Noncontrolling interests
    
    
    27,499
    
    
    
    20,684Total shareholders equity
    
    
    4,180,341
    
    
    
    3,379,485Total liabilities and shareholders equity
    
    
    30,072,526
    
    
    
    25,510,171
 (1)
    
    See Note 4.2.
 29.
    
    OPERATIONS BY GEOGRAPHICAL SEGMENT
 The principal financial information, classified by country of office where transactions
originate, is shown below:
 As of December 31,2010
    
    
    2009
    
    
    2008Total revenues
    
    
    5,220,502
    
    
    
    5,032,704
    
    
    
    4,110,010Argentina
    
    
    5,186,234
    
    
    
    4,952,908
    
    
    
    4,088,419Bahamas
    
    
    34,268
    
    
    
    79,796
    
    
    
    21,591Net income
    
    
    1,010,430
    
    
    
    751,930
    
    
    
    660,050Argentina
    
    
    990,907
    
    
    
    687,294
    
    
    
    656,611Bahamas
    
    
    19,523
    
    
    
    64,636
    
    
    
    3,439Total assets
    
    
    33,524,407
    
    
    
    26,859,238
    
    
    
    22,430,272Argentina
    
    
    32,793,241
    
    
    
    25,882,809
    
    
    
    22,036,045Bahamas
    
    
    731,166
    
    
    
    976,429
    
    
    
    394,227
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BANCO MACRO S.A. AND SUBSIDIARIES
 30.
    
    FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
 The Bank enters into various transactions involving off-balance-sheet financial instruments.
These instruments could be used to meet the risk management, trading and financing needs of
customers or for the Banks proprietary trading and asset and liability management purposes,
and could be subject to varying degrees of credit and market risk. Credit risk and market risk
associated with on- and off-balance-sheet financial instruments are monitored on an aggregate
basis.
 The Bank uses the same
credit policies in determining whether to enter or extend call and
put option contracts, commitments, conditional obligations and
guarantees as it does for granting loans.
 30.1.
    
    Derivatives
 In the normal course of business, the Bank enters into a variety of transactions
principally in the foreign exchange and stock markets. Most counterparts in the
derivative transactions are banks and other financial institutions.
 These instruments include:
 
    
    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 parties 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.
 Pursuant to Central Banks rules, forward transactions with delivery of underlying
assets, must be recorded under Other receivables from financial intermediations and
Other liabilities from financial intermediations in the accompanying balance sheets and
they were valued as mentioned in Note 4.4.h) (accrual method).
 The notional contractual amount of these instruments represents the volume of outstanding
transactions and do not represent the potential gain or loss associated with the market
or credit risk of such transactions. The market risk of derivatives arises from the
potential for changes in value due to fluctuations in market prices.
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BANCO MACRO S.A. AND SUBSIDIARIES
 The credit risk of derivatives arises from the potential of the counterparty to default
on its contractual obligations. The effect of such a default varies as the market value
of derivative contracts changes. Credit exposure exists at a particular point in time
when a derivative has a positive market value. The Bank attempts to limit its credit risk
by dealing with creditworthy counterparts and obtaining collateral, where appropriate.
The following table shows, the notional value of options and outstanding forward
contracts recorded in memorandum accounts as of December 31, 2010 and 2009:
 As of December 31,2010
    
    
    2009Forward purchases of foreign exchange without delivery of underlying asset (a)
    
    
    555,897
    
    
    
    461,234Forward sales of foreign exchange without delivery of underlying asset (a)
    
    
    236,851
    
    
    
    286,416Interest rate swaps (b)
    
    
    157,066
    
    
    
    157,917Put options sold (c)
    
    
    54,780
    
    
    
    69,900Put options taken (d)
    
    
    
    
    
    
    25,229Call options sold (e)
    
    
    17,587
    
    
    
    32,905
 (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, 2010 and 2009. They expired a few days later. Any
quoted price-differences were charged to income.(b)
    
    Related to the following interest rate swap transactions: b.1)
    
    The Bank and the Central
Bank agreed swap agreements
entitling the Bank to collect, an a monthly basis, the positive
difference between the Badlar interest rate in Argentine pesos and
interest rates ranging from 15%, to 16.50% nominal interest rate p.a.,
applied on a total of notional values of thousands of 115,000. In the
event that the difference between the rates is negative, the Bank shall
be required to pay the difference. The agreement will expire between
April 30, 2012 and October 31, 2014. The objective of the transactions is
placement on medium- and long-term loans set forth in Central Bank
Communiqué A 4776, as supplemented.
 b.2)
    
    Relates to interest rate swap agreements whereby
on a quarterly basis the Bank shall be entitled to receive the positive
difference between 10.25% nominal interest rate p.a. 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 differences between both rates were negative, the Bank
shall be required to pay the difference. The amount booked in the Banks
memorandum accounts is related to the residual principal amount of the
loan of notional values of thousands of 42,066 and 41,917, respectively.
 b.3)
    
    The Bank agreed on ten swap agreements entitling
the Bank to receive, on a monthly basis, the positive difference between
16.35% nominal interest rate p.a. and the Badlar interest rate in
Argentine pesos, of notional values of thousands of 1,000. In the event
that the difference between both rates is negative, the Bank shall be
required to pay the difference. The agreement expired on April 30, 2010.
 (c)
    
    Relates to put options on coupons of the Argentine Government
bonds provided in Presidential Decrees Nos. 905/02 and 1,836/02, as
supplemented, which were received by the holders of rescheduled deposits through
the exchanges implemented by the Argentine Government.(d)
    
    This is related to a put option taken on trust securities issued
by financial trust Fideicomiso Financiero Best Consumer Finance Serie IX. On
February 4, 2010, the transaction with Credilogros Compañia Financiera S.A. was
cancelled and the put option purchase was thus annulled.  F - 61




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BANCO MACRO S.A. AND SUBSIDIARIES
 (e)
    
    As of December 31, 2010, this is related four call options
of Petroleo Brasileiro S.A. The agreement expired on January, 2011 and April,
2011. These call options were not exercised. As of December 31, 2009 this is related to a call option sold on a piece of
real property belonging to the Bank, entitling the Bank to receive a minimum
income of USD 300,000 or the resulting amount from applying a 15% nominal
interest rate p.a. on a principal amount of USD 5,100,000 plus notarial
expenses, maintenance expenses and service expenses, whichever higher. This
option expired in September 2010, and it was not exercised.
 Net income (loss) resulting from these transactions for the fiscal years ended
December 31, 2010, 2009 and 2008, amount to income (loss) and are included in the
Other Financial Income:
 Transactions
    
    2010
    
    
    2009
    
    
    2008Premiums on reverse repurchase agreements
    
    
    33,839
    
    
    
    63,168
    
    
    
    (10,049
    )Premiums on repurchase agreements
    
    
    (5,281
    )
    
    
    (2,314
    )
    
    
    10,705Interest rate swaps
    
    
    (3,397
    )
    
    
    4,344
    
    
    
    1,696Forwards foreign-currency transaction offset
    
    
    9,471
    
    
    
    13,992
    
    
    
    130,127Transaction with options
    
    
    1,441
    
    
    
    2,654
    
    
    
    5,162Total
    
    
    36,073
    
    
    
    81,844
    
    
    
    137,641
 30.2.
    
    Credit-related financial instruments
 The Banks exposure to credit loss in the event of the counterparts failure to fulfill
the commitments to extending credit, guarantees granted and foreign trade acceptances is
represented by the contractual notional amount of those investments.
 A summary of credit exposure related to these items is shown below (*):
 As of December 31,2010
    
    
    2009Unusued portion of loans granted per debtors classification regulations
    
    
    57,533
    
    
    
    Other guarantees provided covered by debtors classification regulations
    
    
    66,192
    
    
    
    85,213Other guarantees provided not covered by debtors classification regulations
    
    
    130,684
    
    
    
    130,826Other covered by debtors classification standards
    
    
    90,171
    
    
    
    250,675
 (*)
    

    Most of this amount as of December 31, 2010 and 2009, have a remaining
maturity of less than one year.
 Commitments to extend credit are agreements to lend to a customer at a future date,
subject to compliance with contractual terms. Commitments generally have fixed expiration
dates or other termination clauses and may require the payment of a fee. Since many of
the commitments are expected to expire without being drawn upon, the total commitment
amounts do not necessarily represent actual future cash requirements for the Bank. The
Bank evaluates each customers creditworthiness on a case-by-case basis.
 Foreign trade acceptances represent Bank customers liabilities on outstanding drafts or
bills of exchange that have been accepted by the Bank and the Banks liability to remit
payment upon the presentation of the accepted drafts or bills of exchange.
 The credit risk involved in foreign trade acceptances and guarantees granted is
essentially the same as that involved in extending loan facilities to customers. In order
to grant guarantees to its customers, the Bank may require counter guarantees.
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BANCO MACRO S.A. AND SUBSIDIARIES
 
 The Bank accounts for checks drawn thereon and on other banks, as well as other items in
process of collection, such as notes, bills and miscellaneous items, in memorandum
accounts until the related item clears or is accepted. In Managements opinion, no
significant risk of loss exists on these clearing transactions. The amounts of clearing
items in collection process are as follows:
 As of December 31,2010
    
    
    2009Checks drawn on the Bank pending clearing
    
    
    1,364,942
    
    
    
    997,472Checks drawn on other Banks
    
    
    244,461
    
    
    
    261,186
 30.3
    
    Trust activities
 See Note 13.
 31.
    
    BUSINESS SEGMENT CONSOLIDATED INFORMATION
 FASB ASC 280 Segment reporting requires that a public business enterprise report financial
and descriptive information about its reportable operating segments. Operating segments are
components of an enterprise about which separate financial information is available that is
regularly by the chief operating decision maker in deciding how to allocate resources and in
assessing performance. Generally, financial information is required to be reported on the basis
that it is used internally for evaluating segment performance and deciding how to allocate
resources to segments. Management has determined that the Bank has one reportable segment
related to banking activities.
 32.
    
    SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN CENTRAL BANK RULES AND UNITED STATES ACCOUNTING
PRINCIPLES
 The following is a description of the significant differences between Central Bank rules
followed in the preparation of the Banks financial statements and those applicable in the
United States under generally accepted accounting principles (US GAAP). FASB ASC shall refer
to Financial Accounting Standards Board Accounting Standards Codification.
 In 2010 the Bank adopted the following Accounting Standards Update (ASU):
 
    
    ASU 2009-17  Consolidations (Topic 810), Amendments to FASB Interpretations No 46
(R); see Note 32.26,
 
    
    ASU 2010-06  Fair Value Measurement and Disclosures (Topic 820), Improving
Disclosures about Fair Value Measurements. This ASU requires additional disclosures
about fair value measurements. Such disclosures are in Note 32.21,
 
    
    ASU 2010-20  Receivables (Topic 310) Disclosures about Credit Quality of Financing
Receivables and the Allowance for Credit Losses. This Update amends Topic 310 to improve
the disclosures that an entity provides about the credit quality of its financing
receivables and the related allowance for credit losses. As a result of these amendments,
an entity is required to disaggregate by portfolio segment or class certain existing
disclosures and provide certain new disclosures about its financing receivables and
related allowance for credit losses. Such disclosures are in Note
32.4.
 32.1.
    
    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.
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BANCO MACRO S.A. AND SUBSIDIARIES
 
 For purposes of US GAAP reporting, the Bank applies FASB ASC 740 Income Taxes.
Under this method, income tax is recognized based on the liability method whereby
deferred tax assets and liabilities are recorded for temporary differences between
the financial reporting and tax basis of assets and liabilities at each reporting
date. FASB ASC 740 requires that an allowance for deferred tax assets be provided to
the extent that it is more likely than not that they will not be realized, based on
the weight of available evidence. In order to determine the amount of the valuation
allowance required, in accordance with FAS ASC 740-10-30-16 through 30-25, the Bank
evaluates for each consolidated entity all available evidence, both positive and
negative and the future realization of the tax benefit in a relatively short period
of time, considering future reversals of existing taxable temporary differences,
future taxable income exclusive of reversing temporary differences and carryforwards
and tax-planning strategies.
 FASB ASC 740 also prescribes a recognition threshold and a measurement attribute for
the financial statement recognition and measurement of tax positions taken or
expected to be taken in a tax return. For those benefits to be recognized, a tax
position must be more-likely-than-not to be sustained upon examination by taxing
authorities.
 There were no unrecognized tax benefits as of December 31, 2010, 2009 and 2008.
 The Bank and its subsidiaries file income tax returns in Argentina. The Bank is
subject to Argentina income tax examination for calendar fiscal years ending 2005
through 2010 (in addition see Note 16).
 Deferred tax assets and liabilities (including those related to business combinations
mentioned in Note 32.7.a) y c)) are summarized as follows:
 As of December 31,Description
    
    2010
    
    
    2009Deferred tax assets:Governments and private securities
    
    
    162
    
    
    
    2,386Loans
    
    
    147,086
    
    
    
    105,963Intangible assets
    
    
    
    
    
    
    9,487Allowance for loss contingencies
    
    
    68,683
    
    
    
    62,535Net tax loss carry forwards
    
    
    921
    
    
    
    754Other
    
    
    35,517
    
    
    
    36,955Total deferred assets
    
    
    252,369
    
    
    
    218,080Deferred tax liabilities:Property, equipment and other assets
    
    
    (2,399
    )
    
    
    (6,768
    )Intangible assets
    
    
    (37,404
    )
    
    
    Foreign exchange difference
    
    
    (24,684
    )
    
    
    (19,224
    )Total deferred liabilities
    
    
    (64,487
    )
    
    
    (25,992
    )Deferred tax asset
    
    
    187,882
    
    
    
    192,088Allowance for deferred tax assets
    
    
    (79,858
    )
    
    
    (65,673
    )Net deferred tax assets under US GAAP
    
    
    108,024
    
    
    
    126,415
 As of December 31, 2010, the consolidated tax loss carry forwards of 2,632 are as
follows:
 Expiration year
    
    Amount2011
    
    
    4892012
    
    
    1,3612013
    
    
    1442014
    
    
    6382,632
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BANCO MACRO S.A. AND SUBSIDIARIES
 The movement of the net deferred tax assets for the fiscal years presented is
summarized as follows:
 As of December 31,2010
    
    
    2009
    
    
    2008Net deferred tax assets at the beginning of the year
    
    
    126,415
    
    
    
    102,946
    
    
    
    123,077Net deferred tax liabilities acquired from
acquisition on business combination (*)
    
    
    (11,113
    )
    
    
    
    
    
    
    Net amount recorded in comprehensive income
    
    
    85,251
    
    
    
    (146,525
    )
    
    
    42,132Net deferred tax (expense)/ income for the year
    
    
    (92,529
    )
    
    
    169,994
    
    
    
    (62,263
    )Net deferred tax assets at the end of the year
    
    
    108,024
    
    
    
    126,415
    
    
    
    102,946
 (*)
    
    Included in Note 32.7. The following table accounts for the difference between the actual tax provision
under Central Bank regulations and the total income tax expense in accordance with US
GAAP:
 Year ended December 31,Description
    
    2010
    
    
    2009
    
    
    2008Income tax in accordance with Central Bank regulations
    
    
    365,775
    
    
    
    659,250
    
    
    
    261,207Deferred tax charges
    
    
    92,529
    
    
    
    (169,994
    )
    
    
    62,263Total income tax expense in accordance with US GAAP
    
    
    458,304
    
    
    
    489,256
    
    
    
    323,470
 The following table accounts for the difference between the actual tax provision and
the amounts obtained by applying the statutory income tax rate in Argentina to income
before income tax in accordance with US GAAP:
 Year ended December 31,Description
    
    2010
    
    
    2009
    
    
    2008Pre-tax income in accordance with US GAAP
    
    
    1,323,519
    
    
    
    1,483,025
    
    
    
    954,641Statutory income tax rate
    
    
    35
    %
    
    
    35
    %
    
    
    35
    %Tax on net income at statutory rate
    
    
    463,232
    
    
    
    519,059
    
    
    
    334,124Permanent differences at the statutory rate:- Variation of allowances
    
    
    14,185
    
    
    
    (23,635
    )
    
    
    (30,159
    )- Income not subject to income tax
    
    
    (34,669
    )
    
    
    (23,955
    )
    
    
    (5,098
    )- Others
    
    
    15,556
    
    
    
    17,787
    
    
    
    24,603Income tax in accordance with US GAAP
    
    
    458,304
    
    
    
    489,256
    
    
    
    323,470
 In Note 32.7 the abovementioned adjustments were split considering business
combinations or other adjustments.
 Had US GAAP been applied, in addition to the adjustments related to business
combinations mentioned in Note 32.7 d), the Banks assets would increase by 132,250,
131,364 and 107,012 as of December 31, 2010, 2009 and 2008, respectively. In
addition, income would decrease by 84,365 and 58,608 for the years ended December 31,
2010 and 2008, respectively, and increase by 170,877 for the year ended December 31,
2009.
 b)
    
    In addition, as of December 31, 2009 and 2008 the Bank had asset of
10,280 and 25,767, 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. As of December 31, 2010 the credit was totally used. In
accordance with US GAAP, the Bank should be record allowances for the portion of
such credit which was deemed to be more likely than not that it would not be
recovered, as per FASB ASC 740. The Bank determinated that no allowances was needed
under US GAAP as of December 31, 2009 and 2008.
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BANCO MACRO S.A. AND SUBSIDIARIES
 
 32.2.
    
    Exposure to the Argentine Public Sector and Private Securities
 a)
    
    LoansNon-financial federal government sector
 During the fiscal year ended December 31, 2001, and as a consequence of Presidential
Decree No. 1,387/01, the Bank exchanged a portion of federal government securities
effective as of November 6, 2001, and received so-called guaranteed loans in
consideration thereof. The loans received in this exchange were not significant. In
addition, the Bank has guaranteed loans acquired in the market and also through
business combinations described elsewhere in this footnote.
 During 2009, the Bank entered into an exchange agreement whereby it exchanged the
guaranteed loans for a book value of 277,832 and received Argentine bonds (Bonar) at
the Badlar interest rate + 275 basis points, in Argentine pesos maturing in 2014 for
a book value of 277,832. Under Central Bank rules, the accounting of the exchange did
not have impact in the consolidated financial statements of the Bank.
 Under US GAAP, FASB ASC 310-30-35 Loan refinancing or Restructuring requires to
recognize the government securities received at fair value and derecognize the
guaranteed loans transferred at their carrying amounts. In consequence, income would
increase by 11,635.
 As mentioned in Note 4.4.c), Guaranteed loans were valued according to Central Bank
Communiqué A 4,898.
 Under US GAAP, the difference between the cost of each acquired loan and its expected
future cash flows is accounted for in accordance with FASB ASC 310-30 Loans and
debts acquired with deteriorated credit quality. In accordance with this rule, the
Bank should continue to estimate cash flows expected to be collected over the life of
the loan.
 As of December 31, 2008, based on available information and events, the Bank
estimated that the guaranteed loans were impaired, applying FASB ASC 310-10-35
Receivables  Overall  Subsequent measurement. The guaranteed loans considered
impaired were approximately 475,658 (in 2008 the Bank recognized interest income for
these loans of 31,604). Therefore, as of December 31, 2008, the Bank estimated
allowances for such loans for a total amount of 50,127.
 As of December 31, 2009, taking into account the available information and the
significant improvement in the expected cash flow to be collected, the Bank estimated
that guaranteed loans were not impaired. In accordance with FASB ASC 310-30,
valuation allowances required the previous year were reversed.
 As of December 31, 2010, taking into account the available information and the
significant improvement in the expected cash flow to be collected, the Bank estimated
that guaranteed loans were not impaired.
 The effects of adjustments required to state such amounts in accordance with US GAAP,
besides the adjustments mentioned in Note 32.7 d), would decrease assets by 168,933,
82,537, and 285,320 as of December 31, 2010, 2009 and 2008, respectively.
 On the other hand, income would decrease by 86,396, for the year ended December 31,
2010 and increase by 202,783 and 3,726 for the years ended December 31, 2009 and 2008
respectively.
 b)
    
    Government securities
 As of December 31, 2009 and 2008, according to Central Bank Communiqué A 4861
dated October 30, 2008, as supplemented, the Bank classified certain government
securities under special investment accounts, as disclosed in Note 20. These
government securities were recorded at their cost value increased by their internal
rate of return and adjusted by the benchmark stabilization coefficient (CER), as
applicable (see Note 4.4.b.1).
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BANCO MACRO S.A. AND SUBSIDIARIES
 
 In accordance with Central Bank Communiqué A 5,024, the holdings of Argentine
government securities and Central Bank monetary regulation instruments recorded under
this valuation system should be reversed and booked at market value. Therefore,
during 2010 the Bank reclassified these securities. In addition considering the
favorable market situation and
improvements in conditions of the assets, the Bank has sold a significant portion of
such holdings. As of December 31, 2010 the Bank classified those remaining
government securities under holdings for trading or intermediation transactions
recorded at their quoted price (see Note 4.4.b.2).
 As of December 31, 2010, 2009 and 2008, the Bank did not have the intention of
keeping such holdings through their maturity. Consequently, under US GAAP, these
holdings in investment accounts were considered as available for sale and carried
at fair value with the unrealized gains and losses reported as net of income tax
within the shareholders equity accounts in accordance with FASB ASC 320.
 The effects of adjustments required to state such amounts in accordance with US GAAP
would increase assets by 363, 237,869 as of December 31, 2010 and 2008, respectively,
and would decrease by 39,639 as of December 31, 2009.
 On the other hand, income would increase by 20,305 and 19,139 for the years ended
December 31, 2010 and 2008, respectively, and would decrease by 92,109 for the year
ended December 31, 2009.
 c)
    
    Instruments issued by Central Bank of Argentina
 As of December 31, 2010, 2009 and 2008, the Bank had instruments issued by Central
Bank of Argentina. Under Central Bank rules, these securities were valued at the
quoted price of each security or at the cost value increased by their internal rate
of return, as mentioned in Note 4.4.b.4 and b.5).
 Under US GAAP, these securities should be considered as available for sale and
carried at fair value, with unrealized gains and losses reported as net of income tax
within the shareholders equity accounts in accordance with FASB ASC 320.
 The effects of adjustments required to state such amounts in accordance with US GAAP
would decrease assets by 3,986 and 33,729 as of December 31, 2010 and 2008,
respectively, and would increase assets by 711 as of December 31, 2009.
 On the other hand, income would increase by 13,467 and 3,008 for the years ended
December 31, 2010 and 2009, respectively, and decrease by 3,758 for the year ended
December 31, 2008.
 d)
    
    Other unlisted securities (in accordance with Central Bank)
 As of December 31, 2010, 2009 and 2008, the Bank had other unlisted securities
(mainly government securities and Corporate Bonds). Under Central Bank rules, these
securities were valued at the quoted price of each security or at the cost value
increased by their internal rate of return, as mentioned in Note 4.4.b.3), 4.4.h.4)
and 4.4.h.5).
 Under US GAAP, these securities should be considered as available for sale and
carried at fair value, with unrealized gains and losses reported as net of income tax
within the shareholders equity accounts in accordance with FASB ASC 320.
 The effects of adjustments required to state such amounts in accordance with US GAAP
would increase assets by 7,877 as of December 31, 2010 and would decrease assets by
4,954 and 32,215 as of December 31, 2009 and 2008, respectively.
 On the other hand, income would decrease by 11,618 and 11,262 for the years ended
December 31, 2010 and 2008, respectively, and increase by 9,653 for the year ended
December 31, 2009.
  F - 67




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 
 The carrying amount under Central Bank rules, amortized cost, net unrealized gains and
fair value of securities classified as available for sale (see Notes 20 and 28)
mentioned in items b) and c) as of December 31, 2010 and 2009, are as follows:
 As of December 31, 2010NetCarrying
    
    
    Amortized
    
    
    UnrealizedAmount
    
    
    Cost
    
    
    Gains/(Loss)
    
    
    Fair ValueGovernment securities
    
    
    214,317
    
    
    
    154,005
    
    
    
    60,675
    
    
    
    214,680Instruments issued by
Central Bank of Argentina
    
    
    3,849,293
    
    
    
    3,850,101
    
    
    
    (19,240
    )
    
    
    3,830,861Others unlisted securities
    
    
    569,346
    
    
    
    575,605
    
    
    
    20,904
    
    
    
    596,509Total
    
    
    4,632,956
    
    
    
    4,579,711
    
    
    
    62,339
    
    
    
    4,642,050
 As of December 31, 2009NetCarrying
    
    
    Amortized
    
    
    UnrealizedAmount
    
    
    Cost
    
    
    Gains/(Loss)
    
    
    Fair ValueGovernment securities
    
    
    659,371
    
    
    
    578,754
    
    
    
    318,487
    
    
    
    897,241Instruments issued by
Central Bank of Argentina
    
    
    5,156,929
    
    
    
    5,154,796
    
    
    
    (1,076
    )
    
    
    5,153,720Others unlisted securities
    
    
    202,660
    
    
    
    205,205
    
    
    
    (3,546
    )
    
    
    201,659Total
    
    
    6,018,960
    
    
    
    5,938,755
    
    
    
    313,865
    
    
    
    6,252,620
 The proceeds from sales of available for sale securities and the gross realized gains
that have been included in earnings as a result of those sales, for the years ended
December 31, 2010, 2009 and 2008 are as follows:
 Proceeds from salesAs of December 31,Available for sale securities
    
    2010 (*)
    
    
    2009 (*)
    
    
    2008 (*)Debt Securities Issued by Argentinian Government
    
    
    1,086,234
    
    
    
    1,947,021
    
    
    
    3,450,382Others unlisted securities
    
    
    111,667
    
    
    
    
    
    
    
    1,197,901
    
    
    
    1,947,021
    
    
    
    3,450,382
 (*)
    
    As of December 31, 2010, 2009 and 2008, realized gains as a result of those sales
amounted to 175,960, 388,190 and 2,538, respectively. The amount of the unrealized holding gain or loss on available for sale securities,
before tax, that have been included in accumulated other comprehensive income (see Note
32.18) is as follows:
 Securities
    
    2009
    
    
    Increase
    
    
    Decrease
    
    
    2010Government securities
    
    
    318,487
    
    
    
    20,644
    
    
    
    (278,456
    )
    
    
    60,675Instruments issued by
Central Bank of
Argentina
    
    
    (1,076
    )
    
    
    
    
    
    
    (18,164
    )
    
    
    (19,240
    )Others unlisted securities
    
    
    (3,546
    )
    
    
    27,220
    
    
    
    (2,770
    )
    
    
    20,904Total
    
    
    313,865
    
    
    
    47,864
    
    
    
    (299,390
    )
    
    
    62,339
 Securities
    
    2008
    
    
    Increase
    
    
    Decrease
    
    
    2009Government securities
    
    
    (51,130
    )
    
    
    369,617
    
    
    
    
    
    
    
    318,487Instruments issued by
Central Bank of
Argentina
    
    
    (32,509
    )
    
    
    31,433
    
    
    
    
    
    
    
    (1,076
    )Others unlisted securities
    
    
    (21,153
    )
    
    
    21,210
    
    
    
    (3,603
    )
    
    
    (3,546
    )Total
    
    
    (104,792
    )
    
    
    422,260
    
    
    
    (3,603
    )
    
    
    313,865
  F - 68




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Securities
    
    2007
    
    
    Increase
    
    
    Decrease
    
    
    2008Government securities
    
    
    7,648
    
    
    
    2,538
    
    
    
    (61,316
    )
    
    
    (51,130
    )Instruments issued by
Central Bank of
Argentina
    
    
    (2,538
    )
    
    
    
    
    
    
    (29,971
    )
    
    
    (32,509
    )Others unlisted securities
    
    
    1,617
    
    
    
    
    
    
    
    (22,770
    )
    
    
    (21,153
    )Total
    
    
    6,727
    
    
    
    2,538
    
    
    
    (114,057
    )
    
    
    (104,792
    )
 FASB ASC 320 requires that if the decline in fair value is judged to be other than
temporary, the cost of the security shall be written down to fair value, and the write
down amount shall be included in earnings. The Bank evaluated the declines in fair value
to determine whether it was other than temporary and did not recognize any other than
temporary impairment.
 The maturities of available for sale securities as of December 31, 2010 are as follows:
 For the year ended December 31, 2010After 5After 1 year
    
    
    years butWithin 1
    
    
    but within 5
    
    
    within 10year
    
    
    years
    
    
    years
    
    
    TotalGovernment securities
    
    
    4,141
    
    
    
    195,793
    
    
    
    14,746
    
    
    
    214,680Instruments issued by
Central Bank of Argentina
    
    
    3,830,861
    
    
    
    
    
    
    
    
    
    
    
    3,830,861Others unlisted securities
    
    
    184,153
    
    
    
    348,961
    
    
    
    63,395
    
    
    
    596,509Total
    
    
    4,019,155
    
    
    
    544,754
    
    
    
    78,141
    
    
    
    4,642,050
 The portion of trading gains and losses for the period that relates to trading securities
still held as of December 31, 2010, 2009 and 2008 are as follows:
 Gains as of December 31,Trading Securities
    
    2010
    
    
    2009
    
    
    2008Government securities
    
    
    62,217
    
    
    
    839
    
    
    
    16,874Corporate Bonds
    
    
    
    
    
    
    601
    
    
    
    319Other
    
    
    1,592
    
    
    
    2,308
    
    
    
    (656
    )63,809
    
    
    
    3,748
    
    
    
    16,537
 32.3.
    
    Loan origination fees
 The Bank recognizes fees on consumer loans, such as credit cards, mortgage, pledged and
personal loans, stand by letters of credit and guarantees issued, when collected and
charges direct origination costs when incurred. In accordance with US GAAP under FASB
ASC 310-20, loan origination fees and certain direct loan origination costs should be
recognized over the life of the related loan as an adjustment of yield or by
straight-line method, as appropriate.
 The effects of adjustments required to state such amounts in accordance with US GAAP,
would decrease assets by 46,801, 38,920 and 34,043 as of December 31, 2010, 2009 and
2008, respectively. Income would decrease by 7,881, 4,877 and 13,880 for the years
ended December 31, 2010, 2009 and 2008, respectively.
 32.4.
    
    Allowance for loan losses
   F - 69




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##### Table of Contents



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/Under
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 / Under
negotiation or refinancing
agreement
    
    Borrowers who are unable to comply with their obligations as agreed with the bank and, therefore,
formally state, within 60 calendar days after the maturity date, their intention to refinance
such debts. The borrower must enter into a refinancing agreement with the bank within 90
calendar days (if up to two lenders are involved) or 180 calendar days (if more than two lenders
are involved) after the payment default date. If no agreement has been reached within the
established deadline, the borrower must be reclassified to the next category 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.
  F - 70




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##### Table of Contents



Classification
    
    CriteriaIrrecoverable
    
    Loans classified as irrecoverable 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 with the financial institution.Irrecoverable 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 Seguro de Depósitos S.A.(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.
   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 31and 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 in respect of which a legal action seeking collection has been filed or loans having
payment obligations overdue for more than 180 calendar days, but less than 365 calendar
days.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 according to Central Bank Rules.
     F - 71




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##### Table of Contents



a)
    
    Recoveries and write-offs
  b)
    
    Credit Card Loans
    c)
    
    Impaired loansNon Financial Private Sector and residents abroad
   UnpaidRecorded
    
    
    principal
    
    
    Relatedinvestment
    
    
    balance
    
    
    allowance2010With no related allowance recordedCommercialOverdrafts
    
    
    14
    
    
    
    14
    
    
    
    Documents
    
    
    6,064
    
    
    
    7,070
    
    
    
    Mortgage and pledge loans
    
    
    1,502
    
    
    
    3,085
    
    
    
    Other loans (1)
    
    
    88,114
    
    
    
    106,715
    
    
    
    Consumer (2)Documents
    
    
    282
    
    
    
    297
    
    
    
    Mortgage and pledge loans
    
    
    307
    
    
    
    320
    
    
    
    Other loans
    
    
    547
    
    
    
    566
    
    
    
    Total
    
    
    96,830
    
    
    
    118,067
    
    
    
    With an allowance recordedCommercialOverdrafts
    
    
    385
    
    
    
    1,603
    
    
    
    1,218Documents
    
    
    783
    
    
    
    2,933
    
    
    
    2,150Mortgage and pledge loans
    
    
    10,260
    
    
    
    16,153
    
    
    
    5,893Credit card
    
    
    20
    
    
    
    331
    
    
    
    311Other loans
    
    
    5,564
    
    
    
    62,849
    
    
    
    56,186
  F - 72




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##### Table of Contents



UnpaidRecorded
    
    
    principal
    
    
    Relatedinvestment
    
    
    balance
    
    
    allowanceConsumer (2)Overdrafts
    
    
    3,245
    
    
    
    10,217
    
    
    
    6,972Documents
    
    
    1,836
    
    
    
    4,102
    
    
    
    2,266Mortgage and pledge loans
    
    
    12,193
    
    
    
    26,313
    
    
    
    14,120Personal loans
    
    
    49,479
    
    
    
    171,718
    
    
    
    122,239Credit Card
    
    
    16,102
    
    
    
    40,968
    
    
    
    24,866Other loans
    
    
    5,896
    
    
    
    11,917
    
    
    
    6,021Total
    
    
    105,763
    
    
    
    349,104
    
    
    
    242,242Total Commercial
    
    
    112,706
    
    
    
    200,753
    
    
    
    65,758Total Consumer
    
    
    89,887
    
    
    
    266,418
    
    
    
    176,484UnpaidRecorded
    
    
    principal
    
    
    Relatedinvestment
    
    
    balance
    
    
    allowance2009With no related allowance recordedCommercialOverdrafts
    
    
    100
    
    
    
    105
    
    
    
    Documents
    
    
    7,975
    
    
    
    8,385
    
    
    
    Mortgage and pledge loans
    
    
    2,663
    
    
    
    3,723
    
    
    
    Other loans (1)
    
    
    144,014
    
    
    
    163,814
    
    
    
    Consumer (2)Documents
    
    
    386
    
    
    
    390
    
    
    
    Personal loans
    
    
    502
    
    
    
    524
    
    
    
    Other loans
    
    
    352
    
    
    
    356
    
    
    
    Total
    
    
    155,992
    
    
    
    177,297
    
    
    
    With an allowance recordedCommercialOverdrafts
    
    
    1,628
    
    
    
    3,936
    
    
    
    2,308Documents
    
    
    1,335
    
    
    
    3,776
    
    
    
    2,441Mortgage and pledge loans
    
    
    5,438
    
    
    
    10,468
    
    
    
    4,053Credit card
    
    
    200
    
    
    
    372
    
    
    
    172Other loans
    
    
    59,228
    
    
    
    94,929
    
    
    
    38,069Consumer (2)Overdrafts
    
    
    6,956
    
    
    
    13,243
    
    
    
    6,287Documents
    
    
    5,432
    
    
    
    7,601
    
    
    
    2,169Mortgage and pledge loans
    
    
    26,144
    
    
    
    31,817
    
    
    
    5,673Personal loans
    
    
    95,630
    
    
    
    182,536
    
    
    
    86,908Credit card
    
    
    6,919
    
    
    
    23,983
    
    
    
    17,064Other loans
    
    
    10,146
    
    
    
    11,268
    
    
    
    2,692Total
    
    
    219,056
    
    
    
    383,929
    
    
    
    167,836Total Commercial
    
    
    222,581
    
    
    
    289,508
    
    
    
    47,043Total Consumer
    
    
    152,467
    
    
    
    271,718
    
    
    
    120,793
 (1)
    
    Mainly includes loans to highly rating companies.(2)
    
    Includes consumer loans collectively evaluated for impairment.      F - 73




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##### Table of Contents



Commercial
    
    
    Consumer
    
    
    Total2010Beginning balance
    
    
    146,346
    
    
    
    328,773
    
    
    
    475,119Provision for possible loan losses
    
    
    59,868
    
    
    
    197,869
    
    
    
    257,737Charge-off
    
    
    (5,826
    )
    
    
    (152,572
    )
    
    
    (158,398
    )Recoveries
    
    
    (29,640
    )
    
    
    (33
    )
    
    
    (29,673
    )Ending balance
    
    
    170,748
    
    
    
    374,037
    
    
    
    544,785Period end allocated to:Allowances individually evaluated for impairment
    
    
    65,758
    
    
    
    
    
    
    
    65,758Allowances collectively evaluated for impairment
    
    
    104,990
    
    
    
    374,037
    
    
    
    479,027Ending balance
    
    
    170,748
    
    
    
    374,037
    
    
    
    544,7852009Beginning balance
    
    
    177,782
    
    
    
    286,868
    
    
    
    464,650Provision for possible loan losses
    
    
    10,371
    
    
    
    179,929
    
    
    
    190,300Charge-off
    
    
    (37,333
    )
    
    
    (138,024
    )
    
    
    (175,357
    )Recoveries
    
    
    (4,474
    )
    
    
    
    
    
    
    (4,474
    )Ending balance
    
    
    146,346
    
    
    
    328,773
    
    
    
    475,119Period end allocated to:Allowances individually evaluated for impairment
    
    
    46,166
    
    
    
    
    
    
    
    46,166Allowances collectively evaluated for impairment
    
    
    100,180
    
    
    
    328,773
    
    
    
    428,953Ending balance
    
    
    146,346
    
    
    
    328,773
    
    
    
    475,119
    d)
    
    Interest recognition  non-accrual loans
     F - 74




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##### Table of Contents



2010
    
    
    2009CommercialOverdrafts
    
    
    708
    
    
    
    3,874Documents
    
    
    1,368
    
    
    
    2,953Mortgage and pledge loans
    
    
    15,384
    
    
    
    6,535Credit card
    
    
    283
    
    
    
    289Other loans (1)
    
    
    78,740
    
    
    
    56,676ConsumerOverdrafts
    
    
    8,594
    
    
    
    11,453Documents
    
    
    4,772
    
    
    
    7,798Mortgage and pledge loans
    
    
    28,776
    
    
    
    37,116Personal loans
    
    
    163,964
    
    
    
    176,599Credit Card
    
    
    24,094
    
    
    
    13,294Other loans
    
    
    13,162
    
    
    
    12,175Total
    
    
    339,845
    
    
    
    328,762
 (1)
    
    Mainly includes loans to highly rating companies.  Greater30-59
    
    
    60-89
    
    
    Than
    
    
    TotalDays
    
    
    Days past
    
    
    90
    
    
    Past
    
    
    
    
    
    
    Totalpast due
    
    
    due
    
    
    days
    
    
    Due
    
    
    Current
    
    
    Loans2010CommercialOverdrafts
    
    
    42,961
    
    
    
    16,906
    
    
    
    22,972
    
    
    
    82,839
    
    
    
    1,728,767
    
    
    
    1,811,606Documents
    
    
    
    
    
    
    991
    
    
    
    1,368
    
    
    
    2,359
    
    
    
    1,331,351
    
    
    
    1,333,710Mortgage and pledge loans
    
    
    11,851
    
    
    
    166
    
    
    
    39,936
    
    
    
    51,953
    
    
    
    603,596
    
    
    
    655,549Credit card
    
    
    
    
    
    
    
    
    
    
    309
    
    
    
    309
    
    
    
    42,083
    
    
    
    42,392Other loans (1)
    
    
    5,717
    
    
    
    31,367
    
    
    
    94,527
    
    
    
    131,611
    
    
    
    3,439,864
    
    
    
    3,571,475ConsumerOverdrafts
    
    
    7,228
    
    
    
    1,527
    
    
    
    9,843
    
    
    
    18,598
    
    
    
    245,640
    
    
    
    264,238Documents
    
    
    941
    
    
    
    343
    
    
    
    2,583
    
    
    
    3,867
    
    
    
    466,338
    
    
    
    470,205Mortgage and pledge loans
    
    
    7,291
    
    
    
    1,979
    
    
    
    17,222
    
    
    
    26,492
    
    
    
    595,202
    
    
    
    621,694Personal loans
    
    
    35,628
    
    
    
    19,743
    
    
    
    82,893
    
    
    
    138,264
    
    
    
    5,683,274
    
    
    
    5,821,538Credit card
    
    
    254
    
    
    
    220
    
    
    
    43,625
    
    
    
    44,099
    
    
    
    1,469,148
    
    
    
    1,513,247Other loans
    
    
    4,615
    
    
    
    1,458
    
    
    
    7,080
    
    
    
    13,153
    
    
    
    567,708
    
    
    
    580,861Total
    
    
    116,486
    
    
    
    74,700
    
    
    
    322,358
    
    
    
    513,544
    
    
    
    16,172,971
    
    
    
    16,686,515Greater30-59
    
    
    60-89
    
    
    Than
    
    
    TotalDays
    
    
    Days past
    
    
    90
    
    
    Past
    
    
    
    
    
    
    Totalpast due
    
    
    due
    
    
    days
    
    
    Due
    
    
    Current
    
    
    Loans2009CommercialOverdrafts
    
    
    50,621
    
    
    
    25,441
    
    
    
    44,872
    
    
    
    120,934
    
    
    
    1,092,166
    
    
    
    1,213,100Documents
    
    
    894
    
    
    
    
    
    
    
    2,826
    
    
    
    3,720
    
    
    
    1,013,136
    
    
    
    1,016,856Mortgage and pledge loans
    
    
    8,541
    
    
    
    
    
    
    
    27,355
    
    
    
    35,896
    
    
    
    369,064
    
    
    
    404,960Credit card
    
    
    
    
    
    
    
    
    
    
    289
    
    
    
    289
    
    
    
    23,836
    
    
    
    24,125Other loans (1)
    
    
    31,216
    
    
    
    5,718
    
    
    
    89,397
    
    
    
    126,331
    
    
    
    2,439,928
    
    
    
    2,566,259ConsumerOverdrafts
    
    
    9,781
    
    
    
    2,766
    
    
    
    12,208
    
    
    
    24,755
    
    
    
    254,376
    
    
    
    279,131Documents
    
    
    1,489
    
    
    
    528
    
    
    
    4,542
    
    
    
    6,559
    
    
    
    405,842
    
    
    
    412,401Mortgage and pledge loans
    
    
    6,944
    
    
    
    3,935
    
    
    
    21,385
    
    
    
    32,264
    
    
    
    602,273
    
    
    
    634,537Personal loans
    
    
    35,872
    
    
    
    18,876
    
    
    
    99,809
    
    
    
    154,557
    
    
    
    3,863,263
    
    
    
    4,017,820Credit card
    
    
    219
    
    
    
    134
    
    
    
    22,884
    
    
    
    23,237
    
    
    
    903,314
    
    
    
    926,551Other loans
    
    
    2,823
    
    
    
    916
    
    
    
    7,038
    
    
    
    10,777
    
    
    
    378,993
    
    
    
    389,770Total
    
    
    148,400
    
    
    
    58,314
    
    
    
    332,605
    
    
    
    539,319
    
    
    
    11,346,191
    
    
    
    11,885,510
 (1)
    
    Mainly includes loans to highly rating companies.  F - 75




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Commercial
    
    
    Consumer2010
    
    
    2009
    
    
    2010
    
    
    2009In normal situation / performing
    
    
    7,299,370
    
    
    
    5,011,361
    
    
    
    8,903,050
    
    
    
    6,292,230Subject to special monitoring / in
observation  in negotiation or with
rollover agreement / Low Risk
    
    
    32,017
    
    
    
    108,962
    
    
    
    101,757
    
    
    
    97,515Troubled / Medium Risk
    
    
    2,361
    
    
    
    42,709
    
    
    
    71,083
    
    
    
    87,954With high risk or Insolvency / High Risk
    
    
    21,225
    
    
    
    49,535
    
    
    
    144,327
    
    
    
    138,850Irrecoverable
    
    
    59,759
    
    
    
    12,733
    
    
    
    51,155
    
    
    
    43,263Irrecoverable according to Central Bank rules
    
    
    
    
    
    
    
    
    
    
    411
    
    
    
    3987,414,732
    
    
    
    5,225,300
    
    
    
    9,271,783
    
    
    
    6,660,210
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BANCO MACRO S.A. AND SUBSIDIARIES
 32.5.
    
    Intangible assets
 a)
    
    Judgments due to court decisions related to foreign currency-
denominated depositsUnder Central Bank Rules, it includes exchange differences related to the payments
and provisions made by the Bank in relation to the constitutional protection and
court judgments resulting from court decision mentioned in note 2 to our
consolidated financial statements.Under US GAAP, the right to obtain these compensations is deemed a contingent gain
which can not be recognized until realized, pursuant to FASB ASC 450.Additionally, as of December 2010, 2009 and 2008, 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 court decisions, in conformity with
Central Bank indications in the notice dated August 4, 2008.Under US GAAP, in accordance with FASB ASC 450, the Bank should have recorded a
liability to cover the contingent losses related to the application of the Argentine
Supreme Court ruling dated December 27, 2006 and August 28, 2007.The effects of adjustments required to state such amounts in accordance with US
GAAP, besides the adjustments mentioned in Note 32.7. a), would decrease net assets
by 103,772 100,528 and 84,974 as December 31, 2010, 2009 and 2008, respectively. In
addition, income would decrease by 3,244 and 15,554 for the years ended December 31,
2010 and 2009, and increase by 25,677 for the year ended December 31, 2008,
respectively.The adjustments related to these intangible asset acquired in business combination
transactions are included in Note 32.7.a).b)
    
    Software costsUnder Central Bank Rules, it includes software costs relating to preliminary,
application development and post implementation stages of software development.
BCRA GAAP permits the capitalization of certain costs that are not eligible for
capitalization under FASB ASC 350- 40.The adjustments related to capitalized of software cost acquired in business
combination transactions are included in Note 32.7 a).The effects of adjustments required to state such amounts in accordance with US
GAAP, besides the adjustments mentioned in Note 32.7 a), would decrease assets by
17,514, 26,858 and 38,875 as of December 31, 2010, 2009 and 2008, respectively. In
addition income would increase by 9,344, 12,017 and 1,431 for the years ended
December 31, 2010, 2009 and 2008, respectively.c)
    
    Organizational costsUnder Central Bank Rules, it includes inherent cost of set up and organization of
the Bank.Applying US GAAP and in accordance with FASB ASC 720-15 also resulted in other
adjustments relative to capitalized organizational costs resulting in a decrease to
the Bank  ́s assets of 1,889, 8,028 and 8,291 as of December 31, 2010, 2009 and 2008,
respectively. In addition income would increase by 6,139, 263 and 365 for the years
ended December 31, 2010, 2009 and 2008, respectively.The adjustments related to Organizational costs acquired in business combination
transactions are included in Note 32.7 a) to d).
 
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BANCO MACRO S.A. AND SUBSIDIARIES
 
 32.6.
    
    Vacation accrual
 The cost of vacations earned by employees is generally recorded by the Bank when paid.
US GAAP requires that this expense be recorded on an accrual basis as the vacations are
earned.
 Had US GAAP been applied, the Banks shareholders equity would decrease by 95,061,
72,676 and 61,122 as of December 31, 2010, 2009 and 2008, respectively. In addition, the
income would decreased by 22,385, 11,554 and 19,341 for the years ended December 31,
2010, 2009 and 2008, respectively.
 32.7.
    
    Business Combinations
 The Bank has effected several business combinations in the past few years. The Bank is
presenting separately the US GAAP adjustments related to deferred income taxes, loans
and securities valuation and the other effects of purchase accounting by business
combination related to the banks which have not been legally merged into the Bank
(mainly Banco del Tucumán S.A. and Banco Privado de Inversiones S.A.). The qualitative
description of the adjustments related to business combinations are described above, as
the case may be. The details of these effects are described in this footnote.
 a)
    
    Acquisition of controlling interest in Banco del Tucumán S.A.
 On May 5, 2006, the Bank acquired 75% of the capital stock of Banco del Tucumán
S.A., at a cash purchase price of 45,961.
 Under Central Bank rules, business combinations are accounted for the carryover book
value of the acquired company. Additionally, at the acquisition date, the Bank
recognized the difference between the book value of the net equity acquired and the
purchase price as a positive goodwill. Such goodwill is being amortized under the
straight line method over 10 years.
 Under US GAAP, former FAS 141 (not codified) required the acquisition of the
controlling interest of Banco del Tucumán S.A. to be accounted for as a business
combination applying the purchase method.
 Consequently, Banco Macro S.A. has allocated the purchase price (45,961) to the
assets acquired and liabilities assumed based on their estimated fair values as of
the acquisition date (73,575), and the excess of the fair value of the acquired net
assets over the cost has resulted in a negative goodwill (27,614).
 Subsequently, in 2006 and 2007 the Bank acquired the 4.84% and 10.09% additional
interest of Banco del Tucumán S.A. for cash payments of 2,907 and 9,709,
respectively. These acquisitions were accounted for steps acquisitions in accordance
with former SFAS 141 (not codified). Consequently, Banco Macro S.A. has allocated
the purchase prices to the assets acquired and liabilities assumed based on their
estimated fair values at the acquisition dates (17,628 and 6,982, respectively), and
the excess of the fair value of the acquired net assets over the cost has resulted
in a negative goodwill (7,919 and 4,075, respectively).
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BANCO MACRO S.A. AND SUBSIDIARIES
 
 The following table summarizes the adjustments to the assets acquired and
liabilities assumed as of December 31, 2010, 2009 and 2008:
 Increase / (Decrease)Consolidatedshareholders Equity as of
    
    
    Consolidated Net income YearDecember 31
    
    
    ended December 31,2010
    
    
    2009
    
    
    2008
    
    
    2010
    
    
    2009
    
    
    2008Deferred taxes, net of allowances
    
    
    (2,102
    )
    
    
    (4,949
    )
    
    
    (4,066
    )
    
    
    2,847
    
    
    
    (883
    )
    
    
    (3,655
    )Write off of tangible and
intangible assets as a result of
negative goodwill allocated
    
    
    (3,735
    )
    
    
    2,300
    
    
    
    3,339
    
    
    
    (6,035
    )
    
    
    (1,039
    )
    
    
    (4,794
    )Judgments due to Court decisions
related to foreign
currency-denominated deposit
    
    
    (1,281
    )
    
    
    (1,418
    )
    
    
    (2,038
    )
    
    
    137
    
    
    
    620
    
    
    
    2,301Other purchase price adjustments
    
    
    (3,413
    )
    
    
    (3,469
    )
    
    
    (2,888
    )
    
    
    56
    
    
    
    (581
    )
    
    
    408Total
    
    
    (10,531
    )
    
    
    (7,536
    )
    
    
    (5,653
    )
    
    
    (2,995
    )
    
    
    (1,883
    )
    
    
    (5,740
    )
 b)
    
    Acquisition of Nuevo Banco Bisel S.A. Merger with and into Former Nuevo
Banco Bisel S.A.
 b.1)
    
    Acquisition of Nuevo Banco Bisel S.A.
 In August 2006, the Bank acquired 100% of the common shares of Nuevo Banco Bisel
S.A., at a cash purchase price of 19,509. In addition, the Bank and SEDESA entered
into a call and put options agreement for the preferred shares owned by SEDESA.
 On May 28, 2007, the Bank acquired the preferred shares mentioned above by
exercising a call option in relation to them.
 Under Central Bank rules, business combinations are accounted for the carryover book
value of the acquired company. Additionally, at the acquisition date, the Bank
recorded the difference between the book value of the net assets acquired and the
purchase price as a positive goodwill. Such goodwill is being amortized under the
straight line method over 10 years. See also Note 4.2.
 Under US GAAP, former FAS 141 (not codified) required the acquisition of the
controlling interest of Nuevo Banco Bisel S.A. to be accounted for as a business
combination applying the purchase method.
 Consequently, Banco Macro S.A. has allocated the purchase price (19,509) to the
assets acquired and liabilities assumed based on their estimated fair values as of
the acquisition date (61,214), and the excess of the fair value of the acquired net
assets over the cost has resulted in a extraordinary gain (41,705).
 b.2)
    
    Merger with and into Former Nuevo Banco Bisel S.A.
 As mentioned in Note 3.6. in 2009, Banco Macro S.A. carried out the legal merger of
Nuevo Banco Bisel S.A. with and into the Bank. The result of this transaction was a
single shareholder group, including the former non controlling interest of former
Nuevo Banco Bisel S.A., owning the consolidated net assets.
 Banco Macro S.A. issued 1,147,887 registered Class B shares to be delivered to the
non controlling interest of former Nuevo Banco Bisel S.A. That non controlling
interest belonged to subsidiaries of Banco Macro S.A. Therefore, it was a
transaction between entities under common control.
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BANCO MACRO S.A. AND SUBSIDIARIES
 
 Under Central Bank rules, the merger was accounted for based on the carryover value
of assets and liabilities as of January 1, 2009 since the merger was retroactively
recognized to that date for 5,314.
 Under US GAAP, FASB ASC 805 requires this transaction to be accounted for as a
transaction between entities under common control. Therefore, the transaction is
recorded at carryover value of assets and liabilities and in consequence, no gain
or loss shall be recognized in consolidated net income. In addition, the merger
effects were recognized from August 18, 2009 (merger date).
 The effects on the Banks net assets, to account under US GAAP had been resulted in a
decrease by 20,746, 32,840 and 51,721 as of December 31, 2010, 2009 and 2008,
respectively. In addition income would increase by 12,094 and 13,567 for the years ended
December 31, 2010 and 2009, respectively, and decrease by 7,868 for the year ended
December 31, 2008.
 c)
    
    Acquisition of Banco Privado de Inversiones S.A.
 As mentioned in note 3.7, on September 20, 2010, the Bank acquired 100% of the
common shares of Banco Privado de Inversiones S.A at a cash purchase price of USD
23.3 millions.
 The transaction will enable the Bank to serve a greater number of customers with
our current structure, to complement lines of business and to achieve greater
economies of scale by additionally providing Banco Privado de Inversiones with a
more efficient financing structure and permitting its clients access to a network
with a greater geographical coverage.
 Under Central Bank Rules, business combinations are accounted for the carryover
book value of the acquired company and goodwill is recognized based on the
difference of the book value of the net assets acquired and the purchase price
(including contingent consideration). The bank recognized a positive goodwill
amounting to 56,205.
 Under US GAAPS, FASB ASC 805 requires the acquisition of controlling interest of
Banco Privado de Inversiones S.A. to be accounted for as a business combination
applying the purchase method. Consequently, Banco Macro has allocated the purchase
price to the assets acquired and liabilities assumed based on their estimated fair
values as of the acquisition date, and the excess of the fair value of the acquired
net asset over the cost has resulted in a gain.
 The following table summarizes the estimated fair value of the assets acquired and
liabilities assumed at the acquisition date:
 Credit card
    
    
    252,101Intangible non-current assetsCredits card
    
    
    59,799Core deposit
    
    
    5,433Other Assets
    
    
    142,918Total assets acquired
    
    
    460,251Deposits
    
    
    292,438Deferred tax
    
    
    11,113Other liabilities
    
    
    64,590Total liabilities assumed
    
    
    368,141Total net assets
    
    
    92,110% acquired
    
    
    100
    %Total net assets acquired
    
    
    92,110Cash purchase price
    
    
    91,857Gain
    
    
    253
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BANCO MACRO S.A. AND SUBSIDIARIES
 Identification and allocation of the value to the identified intangible assets was based on
multi-period excess earning method (MEEM) for Credit Card and Favourable Source of Founds
(FSF) for Core Deposit.
 The following table summarizes the adjustments to the assets acquired and liabilities assumed
as of December 31, 2010:
 Increase /(Decrease)Consolidated
    
    
    Consolidated Netshareholders
    
    
    incomeEquity
    
    
    Year endedAs of December
    
    
    December31, 2010
    
    
    31, 2010Deferred taxes, net of allowances
    
    
    (22,124
    )
    
    
    (11,011
    )Judgements due to Court decisions related to
foreign currency-denominated deposit
    
    
    (989
    )
    
    
    141Intangible assets adjustments
    
    
    63,212
    
    
    
    (2,020
    )Reversal of goodwill under Central Bank Rules
    
    
    (54,331
    )
    
    
    1,874Other purchase price adjustments
    
    
    3,582
    
    
    
    113Total
    
    
    (10,650
    )
    
    
    (10,903
    )
 d)
    
    Other
 In past years, the Bank consummated other business combinations which also generated
similar adjustments. Had US GAAP been applied, other adjustments relative to these
other business combination would decrease the Banks assets by 46,298, 66,094 and
70,400 as of December 31, 2010, 2009 and 2008, respectively. In addition, income
would increase by 19,796, 4,306 and 4,821 for the years ended December 31, 2010, 2009
and 2008, respectively.
 32.8.
    
    Reporting on Comprehensive Income (loss)
 FASB ASC 220 requires entities to report a measure of all changes in equity of an
enterprise that result from transactions and other economic events of the period other
than transactions with owners (comprehensive income). Comprehensive income (loss) is
the total of net income (loss) and all other non-owner changes in equity.
 This statement requires that comprehensive income (loss) be reported in a financial
statement that is displayed with the same prominence as other financial statements with
an aggregate amount of comprehensive income (loss) reported in that same financial
statement. The adoption of this accounting disclosure is shown in Note 32.18. In the
Banks case, comprehensive income is affected by FASB ASC 830 cumulative translation
adjustments related to the foreign subsidiaries and unrealized gains and losses of
available for sale securities, net of income taxes.
 32.9.
    
    Restatement of financial statements in constant pesos
 Pursuant to Central Bank rules, the Banks financial statements recognize the effects of
inflation as described in Note 4.3.
 As allowed by the SEC, as the Banking financial statements are restated applying a
methodology that comprehensively addresses the accounting for inflation, the effects of
general price-level changes recognized in the Banks financial statements do not need to
be eliminated in reconciling to US GAAP.
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BANCO MACRO S.A. AND SUBSIDIARIES
 
 32.10.
    
    Accounting for derivative instruments and hedging activitiesFASB ASC 815 Derivatives and Hedging establishes accounting and reporting standards
for derivative instruments, including certain ones embedded in other contracts
(collectively referred to as derivatives) and for hedging activities. It requires that
an entity recognize all derivatives as either assets or liabilities in the statement of
financial position and measure those instruments at fair value. The Bank had no embedded
derivatives and does not apply hedge accounting in accordance with FASB ASC 815.Under US GAAP and according with FASB ASC 815 Derivatives and Hedging also requires
disclosures with the intent to provide users of financial statements more information
about Derivative Instruments and Hedging Activities.In the Banks case, interests rate contracts were created with the purpose of extending
medium and long-term credit to productive activity and works of infrastructure, in line
with the communicated No. 49,460 issued by the Central Bank. The Bank performs these
transactions in MAE market, as well as private contracts. These derivatives are settled
monthly (those perform in MAE market) or quarterly (private contracts), whichever is
applicable.In the Foreign Exchange contracts the Bank mainly operates as an intermediary between
parties. The Bank performs these transactions in MAE an Rofex markets, as well as
private contracts. These derivatives are settled daily (those perform in MAE and Rofex
markets) or at maturity (private contracts).The credit risk of derivatives arises from the potential of a counterparty to default on
its contractual obligations. The effect of such a default varies as the market value of
derivative contracts changes. Credit exposure exists at a particular point in time when
a derivative has a positive market value.The tables below disclose the requirement of FASB ASC 815:
 As of December 31,2010
    
    
    2009Derivates not designated as hedging
    
    Balance sheet
    
    
    
    
    
    Balance sheetinstruments under FASB ASC 815
    
    location (1)
    
    Fair value
    
    
    location (1)
    
    Fair valueAssets derivativesInterest rate contracts
    
    Other receivables from financial intermediation
    
    
    8,074
    
    
    Other receivables from financial intermediation
    
    
    7,748Foreign exchange contracts
    
    Other receivables from financial intermediation
    
    
    2,799
    
    
    Other receivables from financial intermediation
    
    
    5,262Total assets derivatives
    
    
    
    
    10,873
    
    
    
    
    
    13,010Liability derivativesInterest rate contracts
    
    Other liabilities from financial intermediation
    
    
    11,756
    
    
    Other liabilities from financial intermediation
    
    
    20,271Foreign exchange contracts
    
    Other liabilities from financial intermediation
    
    
    755
    
    
    Other liabilities from financial intermediation
    
    
    Total liability derivatives
    
    
    
    
    12,511
    
    
    
    
    
    20,271
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BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31,2010
    
    
    2009Amount of gain
    
    
    Amount of gainLocation of gain
    
    or (loss)
    
    
    or (loss)Derivates not designated
    
    or (loss) recognized in
    
    recognized in
    
    
    recognized inas hedging instruments
    
    income on
    
    income on
    
    
    income onunder FASB ASC 815
    
    derivatives (1)
    
    derivatives
    
    
    derivativesInterest rate contracts
    
    Financial income-Other / (Financial expense-Other)
    
    
    (6,383
    )
    
    
    (21,325
    )Foreign exchange contracts
    
    Financial income-Other / (Financial expense-Other)
    
    
    9,471
    
    
    
    (13,992
    )Total
    
    
    
    
    3,088
    
    
    
    (35,317
    )
 (1)
    
    According to Central Bank rules. Considering the derivatives used by the Bank (described in Note 30 and according to the
valuation standards described in Notes 4.4.h) and 4.4.m)), had this accounting
requirement been applied, the Banks assets would decrease by 3,682 and 12,522 as of
December 31, 2010, and 2009, respectively and would increase by 7,200 as of December 31,
2008. In addition income would increase by 8,840 and 4,754 for the years ended December
31, 2010 and 2008 respectively and decrease by 19,722 for the year ended December 31,
2009.
 32.11.
    
    Foreign currency translation
 Financial statements of the subsidiaries Macro Bank Limited and Red Innova
Administradora de Inversión S.A. (liquidated in December 2008) were translated under
Central Bank rules as described in Note 4.1. US GAAP foreign currency translation
requirements are covered by FASB ASC 830-20 Foreign Currency Matters and differs with
Central Bank rules in the translation of the income statement accounts, which under US
GAAP should have been translated at the average exchange rate other than at the year-end
exchange rate, and resulting differences in translation adjustments between assets and
liabilities and components of shareholders equity are recognized as an other
comprehensive income.
 Had US GAAPS been applied, the Banks net income would decrease by 7,951 for the
year ended December 31, 2010, and would increase by 15 and 8,859 for the years ended
December 2009 and 2008, respectively, and these resulting differences recognized as
other comprehensive income.
 32.12.
    
    Accounting for guarantees
 The Bank issues financial guarantees, which are obligations to pay to a third party when
a customer fails to repay its obligation.
 Under Central Bank rules, guarantees issued are recognized as liabilities when it is
probable that the obligation undertaken by the guarantor will be performed.
 Under US GAAP, FASB ASC 460 requires that at inception of a guarantee, a guarantor
recognize a liability for the fair value of the obligation undertaken in issuing the
guarantee. Such liability at inception is deemed to be the fee received by the Bank with
and offsetting entry equal to the consideration received. Subsequent reduction of
liability is based on an amortization method as the Bank is decreasing its risk.
 Had US GAAP been applied, no differences would have existed in the Bank records, besides
the adjustment mentioned in Note 32.3.
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BANCO MACRO S.A. AND SUBSIDIARIES
 32.13.
    
    Earning Per Share
 The Bank holds, and has held, a capital structure with only common stock outstanding.
 Central Bank rules do not require the disclosure of earnings per share nor dividend per
share.
 Under US GAAP, FASB ASC 260, it is required to present basic per-share amounts (Basic
EPS) which is computed by dividing income available to common shareholders by the
weighted-average number of common shares outstanding during the period.
 Diluted earnings per share (Diluted EPS) measure the performance if the potential common
shares that were dilutive had been issued. Potential common shares are securities that
do not have a
current right to participate fully in earnings but could do so in the future. No
potential common shares exist, and therefore basic and diluted EPS are the same.
 The following table sets forth the computation of Basic EPS:
 2010
    
    
    2009
    
    
    2008Numerator:Net income attributable to the controlling interest
under US GAAP
    
    
    859,272
    
    
    
    986,285
    
    
    
    628,243Denominator:Common stock outstanding for the fiscal year (1)
    
    
    594,485,168
    
    
    
    594,485,168
    
    
    
    608,437,455Weighted-average common shares outstanding for the year
    
    
    594,485,168
    
    
    
    595,633,666
    
    
    
    658,124,254Basic EPS attributable to controlling interest under
US GAAP  stated in pesos
    
    
    1.45
    
    
    
    1.66
    
    
    
    0.95
 (1)
    
    See Note 9. During 2010, 2009 and 2008, the Bank paid 208,070, 148,335 and 170,995, respectively, in cash
dividends. Dividend per share amounted to Ps. 0.35, 0.25 and 0.25 respectively. In addition, on
April 26, 2011, the Regular and Special General Shareholders Meeting of Banco Macro S.A.
approved, among other issues, the distribution of cash dividends for an amount of up 505,312.
 32.14.
    
    Corporate Bonds
 a)
    
    Issuance Cost of Corporate Bonds and Interest recognition
 As mentioned in Note 10., on December 18, 2006, the Bank issued the 1st series of
Class 1 subordinated Corporate Bonds for a face value of USD 150,000,000.
 In addition, on January 29, 2007 and on June 7, 2007, the Bank issued the 1st
series of Class 2 nonsubordinated Corporate Bonds for a face value of USD
150,000,000 and the 1st series of Class 3 nonsubordinated Corporate Bonds
(peso-linked Notes) for a face value of USD 100,000,000, respectively.
 In the issuance of these bonds, the Bank incurred direct incremental costs (mainly
underwriting and legal fees).
 Under Central Bank rules, the Bank has been recognized as expenses these costs when
they are incurred and the interest has been accrued according to the contract terms
of the bonds in the period in which it was generated.
 Under US GAAP, the Bank recognizes direct incremental costs and interest based on
the effective interest method over the life of the loan.
 Had US GAAP been applied, the Banks assets would increase by 3,407, 7,970 and
13,211 as of December 31, 2010, 2009 and 2008, respectively. In addition income for
the years ended December 31, 2010, 2009 and 2008 would decrease by 4,563, 5,241 and
5,189, respectively.
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BANCO MACRO S.A. AND SUBSIDIARIES
 
 b)
    
    Repurchased Own Corporate Bonds
 During 2008 and 2009, the Bank repurchased nonsubordinated corporate bonds of Class
2 and 3 issued for itself (see Note 10). Under Central Bank rules, at the
repurchase date, the Bank records an asset under Other receivables from financial
intermediation, valued as mentioned in Note 4.4.h.5), but it does not derecognize
the liabilities generated by the issuance thereof under Other liabilities from
financial intermediation, valued as mentioned in Note 4.4.h.6). Such repurchased
corporate bonds are only considered extinguished and income is recognized when the
Banks Board of Director approved the legal cancellation of such bonds.As of December 31, 2008, the Bank had recorded an asset for repurchases of
nonsubordinated corporate bonds for an amount of 29,105 and still had recorded
liabilities generated by the issuance thereof for an amount of 56,738 cancelled
during 2009.Under US GAAP, FASB ASC 405-20, such repurchased corporate bonds should be
considered extinguished when repurchased. As a consequence, the liabilities should
have been decreased and income should have been recognized.Had US GAAP been applied, the Banks shareholders equity would increase by 27,633
for the year ended December 31, 2008. In addition net income would decrease and
increase by, 27,633 for the years ended December 31, 2009 and 2008, respectively.
 32.15.
    
    Foreclosed assets
 As mentioned in Note 23.2, the Bank has real foreclosed assets and building not affected
by banking activities. Under Central Bank rules, these assets are carried at cost
adjusted by depreciation over the life of the assets (see Note 4.4.k)).
 Under US GAAP, in accordance with FASB ASC 360 Property, Plant and Equipment, such
assets classified as held for sale shall be measured at the lower of its carrying amount
or fair value less cost to sell. If the asset is newly acquired the carrying amount of
the asset shall be established based on its fair value less cost to sell at the
acquisition date. A long-lived asset shall not be depreciated while it is classified as
held for sale.
 Had US GAAP been applied, the Banks assets would increase by 12,908, 12,446 and 11,093
as of December 31, 2010, 2009 and 2008, respectively. In addition income would increase
by 462 and 1,353 for the years ended December 31, 2010 and 2009, respectively, and would
decrease by 2,112 for the year ended December 31, 2008.
 32.16.
    
    Noncontrolling Interests in Subsidiaries
 In December 31, 2007, the FASB issued former SFAS 160 (FASB ASC 810) which amend the
accounting of noncontrolling interests (formerly known as minority interests). For
Banco Macro S.A., it became effective for fiscal years beginning January 1, 2009. The
Bank gave it retroactive effect as of December 31, 2008, so as to compare them with the
current consolidated financial statements.
 Central Bank rules requires to record noncontrolling interests as a component of the
liabilities. FASB ASC 810 requires to record such interests as shareholders equity.
 Had US GAAP been applied, the Banks shareholders equity would increase by 27,499,
20,684 and 15,568 as of December 2010, 2009 and 2008, respectively. In addition income
would increase by 6,815, 5,116 and 2,928 for the years ended December 31, 2010, 2009 and
2008.
  F - 85




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BANCO MACRO S.A. AND SUBSIDIARIES
 32.17.
    
    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.
    
    2010
    
    
    2009
    
    
    2008Net income in accordance with Central Bank rules
    
    
    
    
    1,010,430
    
    
    
    751,930
    
    
    
    660,050Income taxesDeferred taxes, net of allowances
    
    32.1.a)
    
    
    (84,365
    )
    
    
    170,877
    
    
    
    (58,608
    )Exposure to the Argentine public sector and private securitiesLoans  Non-financial federal government sector
    
    32.2.a)
    
    
    (86,396
    )
    
    
    202,783
    
    
    
    3,726Government securities
    
    32.2.b)
    
    
    20,305
    
    
    
    (92,109
    )
    
    
    19,139Instruments issued by Central Bank of Argentina
    
    32.2.c)
    
    
    13,467
    
    
    
    3,008
    
    
    
    (3,758
    )Other unlisted securities
    
    32.2.d)
    
    
    (11,618
    )
    
    
    9,653
    
    
    
    (11,262
    )Loan origination fees
    
    32.3
    
    
    (7,881
    )
    
    
    (4,877
    )
    
    
    (13,880
    )Allowance for loan lossesCredit Card Loans
    
    32.4.b)
    
    
    (5,310
    )
    
    
    (899
    )
    
    
    (2,297
    )Impaired Loans  Non Financial Private Sector and residents
abroad
    
    32.4.c)
    
    
    583
    
    
    
    1,604
    
    
    
    3,667Interest recognition  non accrual loans
    
    32.4.d)
    
    
    4,298
    
    
    
    (3,251
    )
    
    
    (1,824
    )Intangible assetsJudgments due to court decisions related to foreign currency 
denominated deposits
    
    32.5.a)
    
    
    (3,244
    )
    
    
    (15,554
    )
    
    
    25,677Software costs
    
    32.5.b)
    
    
    9,344
    
    
    
    12,017
    
    
    
    1,431Organizational costs
    
    32.5.c)
    
    
    6,139
    
    
    
    263
    
    
    
    365Vacation accrual
    
    32.6
    
    
    (22,385
    )
    
    
    (11,554
    )
    
    
    (19,341
    )Business combinationAcquisition of Banco de Tucumán S.A.
    
    32.7.a)
    
    
    (2,995
    )
    
    
    (1,883
    )
    
    
    (5,740
    )Acquisition of Nuevo Banco Bisel S.A.  Merger with and into
Former Nuevo Banco Bisel S.A.
    
    32.7.b)
    
    
    12,094
    
    
    
    13,567
    
    
    
    (7,868
    )Acquisiton of Banco Privado de Inversiones S.A.
    
    32.7.c)
    
    
    (10,903
    )
    
    
    
    
    
    
    Gain as result of adquisition of Banco Privado de Inversiones
S.A.
    
    32.7.c)
    
    
    253
    
    
    
    
    
    
    
    Other
    
    32.7.d)
    
    
    19,796
    
    
    
    4,306
    
    
    
    4,821Derivative instruments
    
    32.10
    
    
    8,840
    
    
    
    (19,722
    )
    
    
    4,754Foreign currency translation
    
    32.11
    
    
    (7,951
    )
    
    
    15
    
    
    
    8,859Corporate BondsIssuance Cost of Corporate Bonds and Interest recognition
    
    32.14.a)
    
    
    (4,563
    )
    
    
    (5,241
    )
    
    
    (5,189
    )Repurchased Own Corporated Bonds
    
    32.14.b)
    
    
    
    
    
    
    (27,633
    )
    
    
    27,633Foreclosed assets
    
    32.15
    
    
    462
    
    
    
    1,353
    
    
    
    (2,112
    )Noncontrolling interest in subsidiaries
    
    32.16
    
    
    6,815
    
    
    
    5,116
    
    
    
    2,928Net income in accordance with US GAAP
    
    
    
    
    865,215
    
    
    
    993,769
    
    
    
    631,171Less: Net income attributable to the noncontrolling interest
    
    
    
    
    5,943
    
    
    
    7,484
    
    
    
    2,928Net income attributable to the controlling interest in accordance with
US GAAP
    
    
    
    
    859,272
    
    
    
    986,285
    
    
    
    628,243
  F - 86




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BANCO MACRO S.A. AND SUBSIDIARIES
 2010
    
    
    2009
    
    
    2008Net income in accordance with US GAAP
    
    
    865,215
    
    
    
    993,769
    
    
    
    631,171Other comprehensive income, net of tax:
    
    
    (158,324
    )
    
    
    272,117
    
    
    
    (78,246
    )Total comprehensive income, net in accordance with US GAAP
    
    
    706,891
    
    
    
    1,265,886
    
    
    
    552,925Less: Comprehensive income attributable to noncontrolling interest
    
    
    6,053
    
    
    
    7,429
    
    
    
    2,761Comprehensive income attributable to controlling interest
    
    
    700,838
    
    
    
    1,258,457
    
    
    
    550,164Total earning per share attributable to controlling interest in
accordance with US GAAP  stated in pesos
    
    
    1.45
    
    
    
    1.66
    
    
    
    0.95Weighted average number of shares outstanding (in thousands)
    
    
    594,485
    
    
    
    595,634
    
    
    
    658,124
 Increase / (decrease)Consolidated Shareholders Equityas of December 31,Ref.
    
    
    2010
    
    
    2009
    
    
    2008Shareholders equity in accordance with Central
Bank rules
    
    
    
    
    
    
    4,152,842
    
    
    
    3,358,801
    
    
    
    2,821,911Income taxesDeferred taxes, net of allowances
    
    
    32.1.a)
    
    
    
    132,250
    
    
    
    131,364
    
    
    
    107,012Exposure to the Argentine public sector and private securitiesLoans  Non-financial federal government sector
    
    
    32.2.a)
    
    
    
    (168,933
    )
    
    
    (82,537
    )
    
    
    (285,320
    )Government securities
    
    
    32.2.b)
    
    
    
    363
    
    
    
    237,869
    
    
    
    (39,639
    )Instruments issued by Central Bank of Argentina
    
    
    32.2.c)
    
    
    
    (3,986
    )
    
    
    711
    
    
    
    (33,729
    )Other unlisted securities
    
    
    32.2.d)
    
    
    
    7,877
    
    
    
    (4,954
    )
    
    
    (32,215
    )Loan origination fees
    
    
    32.3
    
    
    
    (46,801
    )
    
    
    (38,920
    )
    
    
    (34,043
    )Allowance for loan lossesCredit Card Loans
    
    
    32.4.b)
    
    
    
    (12,106
    )
    
    
    (6,796
    )
    
    
    (5,897
    )Impaired Loans  Non Financial Private Sector and residents abroad
    
    
    32.4.c)
    
    
    
    (8,352
    )
    
    
    (8,935
    )
    
    
    (10,539
    )Interest recognition  non accrual loans
    
    
    32.4.d)
    
    
    
    (3,396
    )
    
    
    (7,694
    )
    
    
    (4,443
    )Intangible assetsJudgments due to court decisions related to foreign currency 
denominated deposits
    
    
    32.5.a)
    
    
    
    (103,772
    )
    
    
    (100,528
    )
    
    
    (84,974
    )Software costs
    
    
    32.5.b)
    
    
    
    (17,514
    )
    
    
    (26,858
    )
    
    
    (38,875
    )Organizational costs
    
    
    32.5.c)
    
    
    
    (1,889
    )
    
    
    (8,028
    )
    
    
    (8,291
    )Vacation accrual
    
    
    32.6
    
    
    
    (95,061
    )
    
    
    (72,676
    )
    
    
    (61,122
    )Business combinationAcquisition of Banco de Tucumán S.A.
    
    
    32.7.a)
    
    
    
    (10,531
    )
    
    
    (7,536
    )
    
    
    (5,653
    )Acquisition of Nuevo Banco Bisel S.A.  Merger with and into
Former Nuevo Banco Bisel S.A.
    
    
    32.7.b)
    
    
    
    (20,746
    )
    
    
    (32,840
    )
    
    
    (51,721
    )Acquisition of Banco Privado de Inversiones S.A.
    
    
    32.7 d)
    
    
    
    (10,650
    )
    
    
    
    
    
    
    Other
    
    
    32.7.d)
    
    
    
    (46,298
    )
    
    
    (66,094
    )
    
    
    (70,400
    )Derivative instruments
    
    
    32.10
    
    
    
    (3,682
    )
    
    
    (12,522
    )
    
    
    7,200Corporate BondsIssuance Cost of Corporate Bonds and Interest recognition
    
    
    32.14.a)
    
    
    
    3,407
    
    
    
    7,970
    
    
    
    13,211Repurchased Own Corporate Bonds
    
    
    32.14.b)
    
    
    
    
    
    
    
    
    
    
    
    27,633Foreclosed assets
    
    
    32.15
    
    
    
    12,908
    
    
    
    12,446
    
    
    
    11,093
  F - 87




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BANCO MACRO S.A. AND SUBSIDIARIES
 Increase / (decrease)Consolidated Shareholders Equityas of December 31,Ref.
    
    
    2010
    
    
    2009
    
    
    2008Noncontrolling Interests in Subsidiaries
    
    
    32.16
    
    
    
    27,499
    
    
    
    20,684
    
    
    
    15,568Banco Macro S.A. Shareholders equity in accordance with US GAAP (1)
    
    
    
    
    
    
    3,783,429
    
    
    
    3,292,927
    
    
    
    2,236,767Noncontrolling interests (2)
    
    
    
    
    
    
    (28,995
    )
    
    
    (23,052
    )
    
    
    (15,568
    )Shareholders equity attributable to the controlling interest in
accordance with US GAAP
    
    
    
    
    
    
    3,754,434
    
    
    
    3,269,875
    
    
    
    2,221,199
 (1)
    
    Includes the effects of other comprehensive income.(2)
    
    It includes the amount recorded under Central Bank rules and the effect
of adjustments mentioned above.
 32.18.
    
    Set forth below are the accumulated other comprehensive income (loss) balances, as of
December 31, 2010, 2009 and 2008  net of related income tax effects:
 AccumulatedUnrealized
    
    
    OtherForeign
    
    
    Gains/
    
    
    ComprehensiveCurrency
    
    
    (losses) on
    
    
    Income /Items (1)
    
    
    securities (2)
    
    
    (Loss) (3)Balances 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
    )Current-fiscal year change
    
    
    (15
    )
    
    
    418,657
    
    
    
    418,642Tax effects
    
    
    5
    
    
    
    (146,530
    )
    
    
    (146,525
    )Balances as of December 31, 2009
    
    
    3,538
    
    
    
    204,012
    
    
    
    207,550Current-fiscal year change
    
    
    7,951
    
    
    
    (251,526
    )
    
    
    (243,575
    )Tax effects
    
    
    (2,783
    )
    
    
    88,034
    
    
    
    85,251Balances as of December 31, 2010.
    
    
    8,706
    
    
    
    40,520
    
    
    
    49,226
 (1)
    
    See Note 32.11.(2)
    
    See Note 32.2.(3)
    
    Includes amounts attributable to the non controlling interest for 110,
(55) and (167) for the years ended December 31, 2010, 2009 and 2008, respectively.
  F - 88




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 32.19.
    
    Statement of Cash flows
       Year ended December 31,2010
    
    
    2009
    
    
    2008Causes of changes in cash and cash equivalentsCash provided by (used in) operating activitiesInterest received on loans, leases and investments
    
    
    3,002,918
    
    
    
    3,424,863
    
    
    
    2,904,605Fees and commissions received
    
    
    1,312,098
    
    
    
    1,043,723
    
    
    
    882,354Purchases and sales of trading securities
    
    
    (69,890
    )
    
    
    734,902
    
    
    
    21,547Other sources of cash
    
    
    97,274
    
    
    
    4,920
    
    
    
    28,909Less:Interest paid
    
    
    (1,238,296
    )
    
    
    (1,667,293
    )
    
    
    (1,196,698
    )Fees and commissions paid
    
    
    (278,375
    )
    
    
    (220,860
    )
    
    
    (168,091
    )Cash paid to suppliers and employees
    
    
    (1,780,237
    )
    
    
    (1,405,088
    )
    
    
    (1,120,663
    )Increase in intangible assets
    
    
    (99,725
    )
    
    
    (74,471
    )
    
    
    (61,991
    )Increase in other receivables from financial intermediation and other assets
    
    
    (1,917,996
    )
    
    
    (431,579
    )
    
    
    (358,736
    )Other uses of cash
    
    
    (705,129
    )
    
    
    (376,475
    )
    
    
    (111,360
    )Net cash (used in) provided by operating activities
    
    
    (1,677,358
    )
    
    
    1,032,642
    
    
    
    819,876Plus:Cash provided by (used in) investing activitiesAvailable for sale- Purchases of investment securities
    
    
    (15,874,417
    )
    
    
    (15,105,006
    )
    
    
    (10,668,191
    )- Proceeds from sales of investment securities
    
    
    18,177,041
    
    
    
    13,257,958
    
    
    
    10,294,965Increase in loans and leases, net
    
    
    (4,685,658
    )
    
    
    (469,106
    )
    
    
    (1,562,881
    )Proceeds from sale of Bank premises and equipment
    
    
    5,050
    
    
    
    2,795
    
    
    
    9,694Purchases of Bank premises and equipment
    
    
    (62,484
    )
    
    
    (37,124
    )
    
    
    (82,513
    )Purchase of Banco Privado de Inveriones S.A, net of cash acquired
    
    
    (55,017
    )
    
    
    
    
    
    
    Net cash used in investing activities
    
    
    (2,495,485
    )
    
    
    (2,350,483
    )
    
    
    (2,008,926
    )
  F - 89




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Year ended December 31,2010
    
    
    2009
    
    
    2008Cash provided by (used in) financing activitiesIncrease in deposits, net
    
    
    4,499,041
    
    
    
    2,742,903
    
    
    
    2,258,332Increase in long term borrowings
    
    
    100,486
    
    
    
    47,494
    
    
    
    101,711Decrease in long term borrowings
    
    
    (400,279
    )
    
    
    (143,024
    )
    
    
    (132,490
    )Increase / (Decrease) in other short term liabilities, net
    
    
    186,450
    
    
    
    747,649
    
    
    
    (80,864
    )Own shares reacquired
    
    
    
    
    
    
    (56,665
    )
    
    
    (380,164
    )Cash dividends paid
    
    
    (208,124
    )
    
    
    (148,350
    )
    
    
    (171,004
    )Net cash provided by financing activities
    
    
    4,177,574
    
    
    
    3,190,007
    
    
    
    1,595,521Increase in cash and cash equivalents
    
    
    4,731
    
    
    
    1,872,166
    
    
    
    406,471Cash at the beginning of fiscal year
    
    
    5,396,063
    
    
    
    3,523,897
    
    
    
    3,117,426Cash at the end of fiscal year
    
    
    5,400,794
    
    
    
    5,396,063
    
    
    
    3,523,897
  Year ended December 31,2010
    
    
    2009
    
    
    2008Net income for the fiscal year
    
    
    1,010,430
    
    
    
    751,930
    
    
    
    660,050Adjustments to reconcile net income to net cash from operating activities:Amortization and depreciation
    
    
    133,000
    
    
    
    123,220
    
    
    
    116,199Provision for loan losses and special reserves, net of reversals
    
    
    213,513
    
    
    
    210,200
    
    
    
    290,778Net (income)/loss from government and private securities
    
    
    (655,756
    )
    
    
    104,598
    
    
    
    (50,788
    )Foreign exchange differences
    
    
    (160,209
    )
    
    
    (133,731
    )
    
    
    (143,094
    )Equity (gain)/ loss of unconsolidated subsidiaries
    
    
    (6,168
    )
    
    
    (7,618
    )
    
    
    25,847Increase from intangible assets
    
    
    (99,725
    )
    
    
    (74,471
    )
    
    
    (61,991
    )Non-computable VAT credit
    
    
    28,132
    
    
    
    21,499
    
    
    
    23,037Valuation allowance of loans to the government sector
    
    
    
    
    
    
    
    
    
    
    66,125(Decrease)/Increase in taxes payable
    
    
    (187,332
    )
    
    
    446,637
    
    
    
    168,862Decrease in other receivables from financial intermediation and other assets
    
    
    (1,917,996
    )
    
    
    (431,579
    )
    
    
    (358,736
    )Net Increase in interest receivable and payable and other accrued income
and expenses
    
    
    (52,951
    )
    
    
    (10,571
    )
    
    
    (12,798
    )Non controlling interest in subsidiaries
    
    
    6,868
    
    
    
    5,092
    
    
    
    3,354Net Increase in other sources of cash
    
    
    10,836
    
    
    
    27,436
    
    
    
    93,031Net cash (used in) provided by operating activities
    
    
    (1,677,358
    )
    
    
    1,032,642
    
    
    
    819,876
 32.20.
    
    Forward transactions pending settlement
     F - 90




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BANCO MACRO S.A. AND SUBSIDIARIES
  32.21.
    
    Fair value Measurement Disclosures
  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.
    F - 91




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  Fair value measurements on a recurring basis as ofDecember 31, 2010DESCRIPTION
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TOTALASSETSGovernment and private securitiesTrading- Government securities
    
    
    295,533
    
    
    
    
    
    
    
    
    
    
    
    295,533- Equity securities
    
    
    17,588
    
    
    
    
    
    
    
    
    
    
    
    17,588Available for sale- Government securities
    
    
    214,680
    
    
    
    183,585
    
    
    
    
    
    
    
    398,265- Instruments issued by Central Bank
    
    
    681,949
    
    
    
    3,148,912
    (*)
    
    
    
    
    
    
    3,830,861Other receivables from financial intermediationTrading- Mutual funds
    
    
    29,225
    
    
    
    
    
    
    
    
    
    
    
    29,225Available for sale- Unlisted Corporate Bonds
    
    
    17,081
    
    
    
    278,804
    
    
    
    
    
    
    
    295,885- Debt securities in financial trust
    
    
    
    
    
    
    
    
    
    
    117,039
    
    
    
    117,039Forward transactions pending settlement
    
    
    72,683
    
    
    
    551
    
    
    
    
    
    
    
    73,234Other receivables in securities
    
    
    4,286
    
    
    
    
    
    
    
    
    
    
    
    4,286Derivative instruments
    
    
    2,085
    
    
    
    
    
    
    
    
    
    
    
    2,085TOTAL ASSETS
    
    
    1,335,110
    
    
    
    3,611,852
    
    
    
    117,039
    
    
    
    5,064,001LIABILITIESOther liabilities from financial intermediationForward transactions pending settlement
    
    
    83,261
    
    
    
    680
    
    
    
    
    
    
    
    83,941Derivative instruments
    
    
    
    
    
    
    
    
    
    
    3,682
    
    
    
    3,682TOTAL LIABILITIES
    
    
    83,261
    
    
    
    680
    
    
    
    3,682
    
    
    
    87,623
 Fair value measurements on a recurring basis asof December 31, 2009DESCRIPTION
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TOTALASSETSGovernment and private securitiesTrading- Government securities
    
    
    465,037
    
    
    
    
    
    
    
    
    
    
    
    465,037- Equity securities
    
    
    43,047
    
    
    
    
    
    
    
    
    
    
    
    43,047- Mutual funds
    
    
    37,829
    
    
    
    
    
    
    
    
    
    
    
    37,829
  F - 92




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Fair value measurements on a recurring basis as ofDecember 31, 2009Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TOTALASSETS (Cont.)Available for sale- Government securities
    
    
    894,306
    
    
    
    84,053
    
    
    
    
    
    
    
    978,359- Instruments issued by Central Bank
    
    
    264,485
    
    
    
    4,889,029
    (*)
    
    
    
    
    
    
    5,153,514Other receivables from financial intermediationAvailable for sale- Unlisted Corporate Bonds
    
    
    
    
    
    
    71,903
    
    
    
    8,736
    
    
    
    80,639- Debt securities in financial trust
    
    
    
    
    
    
    
    
    
    
    39,558
    
    
    
    39,558Forward transactions pending settlement
    
    
    15,486
    
    
    
    1,023
    
    
    
    
    
    
    
    16,509Other receivables in securities
    
    
    5,214
    
    
    
    
    
    
    
    
    
    
    
    5,214Derivative instruments
    
    
    5,295
    
    
    
    
    
    
    
    
    
    
    
    5,295TOTAL ASSETS
    
    
    1,730,699
    
    
    
    5,046,008
    
    
    
    48,294
    
    
    
    6,825,001LIABILITIESOther liabilities from financial intermediationForward transactions pending settlement
    
    
    15,204
    
    
    
    246
    
    
    
    
    
    
    
    15,450Derivative instruments
    
    
    
    
    
    
    
    
    
    
    12,522
    
    
    
    12,522TOTAL
LIABILITIES
    
    
    15,204
    
    
    
    246
    
    
    
    12,522
    
    
    
    27,972
 (*)
    
    Mainly includes instruments issued by Central Bank of Argentina
with less than one year maturity.
   F - 93




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  Fair value measurements using significantunobservable inputs (Level 3)December 31, 2010Debtsecurities inCorporate
    
    
    financialDescription
    
    Derivatives
    
    
    Bonds
    
    
    trust
    
    
    TotalBeginning balance
    
    
    (12,522
    )
    
    
    8,736
    
    
    
    39,558
    
    
    
    35,772Transfer into Level 3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Transfer out of Level 3
    
    
    
    
    
    
    (8,736
    )
    
    
    
    
    
    
    (8,736
    )Total gains or losses (realized/unrealized)- Included in earnings (or changes in net assets)
    
    
    8,840
    
    
    
    
    
    
    
    142
    
    
    
    8,982- Included in other comprehensive income
    
    
    
    
    
    
    
    
    
    
    2,505
    
    
    
    2,505Purchases, issuances, sales, and settlements- Purchases
    
    
    
    
    
    
    
    
    
    
    86,951
    
    
    
    86,951- Issuances
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    - Sales
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    - Settlements
    
    
    
    
    
    
    
    
    
    
    (12,117
    )
    
    
    (12,117
    )Ending balance
    
    
    (3,682
    )
    
    
    
    
    
    
    117,039
    
    
    
    113,357
 Fair value measurements using significantunobservable inputs (Level 3)December 31, 2009Debtsecurities inCorporate
    
    
    financialDescription
    
    Derivatives
    
    
    Bonds
    
    
    trust
    
    
    TotalBeginning balance
    
    
    7,200
    
    
    
    
    
    
    
    
    
    
    
    7,200Transfer into Level 3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Transfer out of Level 3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total gains or losses (realized/unrealized)- Included in earnings (or changes in net assets)
    
    
    (19,722
    )
    
    
    
    
    
    
    
    
    
    
    (19,722
    )- Included in other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Purchases, issuances, sales, and settlements- Purchases
    
    
    
    
    
    
    8,736
    
    
    
    39,558
    
    
    
    48,294- Issuances
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    - Sales
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    - Settlements
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Ending balance
    
    
    (12,522
    )
    
    
    8,736
    
    
    
    39,558
    
    
    
    35,772
  F - 94




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Fair Value Option
  Fair Value Disclosures
    -
 -
 -
    F - 95




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  As of December 31,2010
    
    
    2009Carrying
    
    
    Estimated
    
    
    Carrying
    
    
    EstimatedAmount
    
    
    Fair Value
    
    
    Amount
    
    
    Fair ValueFINANCIAL ASSETSCash
    
    
    5,202,004
    
    
    
    5,202,004
    
    
    
    5,016,192
    
    
    
    5,016,192Government and private securities
    
    
    7,030,074
    
    
    
    6,987,214
    
    
    
    6,901,041
    
    
    
    7,091,594Loans
    
    
    15,910,103
    
    
    
    14,711,084
    
    
    
    11,096,807
    
    
    
    10,287,409Other receivables from financial intermediation
    
    
    3,599,297
    
    
    
    3,537,913
    
    
    
    2,433,295
    
    
    
    2,392,905Receivables to financial leases
    
    
    247,399
    
    
    
    226,700
    
    
    
    274,051
    
    
    
    250,675Other receivables
    
    
    597,011
    
    
    
    596,718
    
    
    
    366,495
    
    
    
    366,09032,585,888
    
    
    
    31,261,633
    
    
    
    26,087,881
    
    
    
    25,404,865FINANCIAL LIABILITIESDeposits
    
    
    23,407,393
    
    
    
    23,398,148
    
    
    
    18,592,866
    
    
    
    18,586,443Other liabilities from financial intermediation
    
    
    4,591,283
    
    
    
    4,515,271
    
    
    
    3,338,070
    
    
    
    3,173,908Other Liabilities
    
    
    633,691
    
    
    
    633,691
    
    
    
    884,082
    
    
    
    884,082Subordinated Corporate Bonds
    
    
    598,470
    
    
    
    686,470
    
    
    
    572,473
    
    
    
    573,68129,230,837
    
    
    
    29,233,580
    
    
    
    23,387,491
    
    
    
    23,218,114
     32.22.
    
    Joint venture
     F - 96




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 32.23.
    
    Items in process of collection
   32.24.
    
    Acceptances
  32.25.
    
    Repurchase agreements
       32.26.
    
    Variable Interest Entities and other trusts
      F - 97




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  
    
    Determine whether the entity meets the criteria to qualify as a VIE and;
 
    
    Determine whether the Bank is the primary beneficiary of a VIE.
  
    
    The design of the entity, including the nature of its risks and the purpose for
which the entity was created, to determine the variability that the entity was
designed to create and distribute to its interest holders;
 
    
    The nature of the involvement with the entity;
 
    
    Whether control of the entity may be achieved through arrangements that do not
involve voting equity;
 
    
    Whether there is sufficient equity investment at risk to finance the activities
of the entity and;
 
    
    Whether parties other than the equity holders have the obligation to absorb
expected losses or the right to received residual returns.
  
    
    Whether the Bank have the power to direct the activities that most
significantly impact the VIEs economic performance and;
 
    
    Whether the Bank absorb a the majority of the VIEs expected losses or the Bank
receive a majority of the VIEs expected residual returns.
     As of December 31,2010
    
    
    2009Cash (a)
    
    
    1,593
    
    
    
    2,458Premises and equipment
    
    
    
    
    
    
    228,166Other assets
    
    
    153,794
    
    
    
    27,566Total Assets (b)
    
    
    155,387
    
    
    
    258,190Other liabilities
    
    
    67,467
    
    
    
    97,917Total Liabilities (c)
    
    
    67,467
    
    
    
    97,917Net Assets
    
    
    87,920
    
    
    
    160,273
  F - 98




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 (a)
    
    Includes non interest-bearing deposits in Banco Macro and Macro
Bank Limited by 1,585 and 1,297 as of December 31, 2010 and 2009, respectively.(b)
    
    Assets that can be used only to settle obligations of the
consolidated variable interest entities.(c)
    
    Creditors (or beneficial interest holders) of these liabilities
do not have recourse against the general credit of the primary beneficiary.
        32.27.
    
    New accounting pronouncements (US GAAP)
 a)
    
    ASU 2010  28  Intangibles  Goodwill and Other (Topic 350), when
to perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or
Negative Carrying amounts.
  b)
    
    ASU 2010- 29  Business Combinations (Topic 805). Disclosure of
Supplementary Pro Forma Information for Business Combinations.
   F - 99




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
   c)
    
    ASU 2011-01  Receivables (topic 310). Deferral of the Effective Date of
Disclosures about Trouble Debt Restructurings in Update No. 2010-20.
  d)
    
    ASU 2011-02  Receivables (Topic 310). A Creditors Determination
of Whether a Restructuring is a Troubled Debt Restructuring.
   F - 100