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UNITED
STATESSECURITIES 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, 2007
 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 number 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 Junior 
Subordinated Bonds Due 20368.50% Notes Due 201710.750% Argentine Peso-Linked Notes Due 2012
 
 (*)
    
    Ordinary shares of Banco Macro S.A. are not listed for trading but only in connection
with the registration of American Depositary Shares which are evidenced by American
Depositary Receipts. 
  None
  9.75% Fixed/Floating Rate Non-Cumulative Junior Subordinated Bonds Due 2036
 8.50% Notes Due 2017
 10.750% Argentine Peso-Linked Notes Due 2012
  11,235,670 Class A ordinary shares, par value Ps. 1.00 per share
672,707,767 Class B ordinary shares, par value Ps. 1.00 per share
 
  þ o
  o þ
  þ o
  þ o o
  U.S. GAAP o
    
    International Financial Reporting
Standards as issued by the International
Accounting Standards Board     o
    
    Other þ
   o þ
  o þ
   o o
 Please send copies of notices and communications from the Securities and Exchange Commission to:
 Hugo N. L. Bruzone, Esq.
    
    Antonia E. Stolper, Esq.Bruchou, Fernández Madero& Lombardi
    
    Shearman & Sterling LLPIng. Butty 275, 12
thFloor
    
    599 Lexington AvenueC1001AFA  Buenos Aires, Argentina
    
    New York, New York 10022




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##### 



Table of contents
 PART I
    
    
    1Item 1. Identity of Directors, Senior Management and Advisers
    
    
    1Item 2. Offer Statistics and Expected Timetable
    
    
    1Item 3. Key Information
    
    
    1Item 4. Information on the Company
    
    
    12Item 5. Operating and Financial Review and Prospects
    
    
    55Item 6. Directors, Senior Management and Employees
    
    
    75Item 7. Major Shareholders and Related Party Transactions
    
    
    82Item 8. Financial Information
    
    
    84Item 9. The Offer and Listing
    
    
    85Item 10. Additional Information
    
    
    88Item 11. Quantitative and Qualitative Disclosure About Market Risk
    
    
    96Item 12. Description of Securities Other Than Equity Securities
    
    
    97PART II
    
    
    98Item 13. Defaults, Dividend Arrearages and Delinquencies
    
    
    98Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
    
    
    98Item 15. Controls and Procedures
    
    
    98Item 16A. Audit Committee Financial Expert
    
    
    100Item 16B. Code of Ethics
    
    
    100Item 16C. Principal Accountant Fees and Services
    
    
    100Item 16D. Exemptions from the Listing Standards for Audit Committees
    
    
    101Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
    
    
    101PART III
    
    
    101Item 17. Financial Statements
    
    
    101Item 18. Financial Statements
    
    
    101Item 19. Exhibits
    
    
    102Exhibit 12.1Exhibit 12.2Exhibit 13.1Exhibit 13.2




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




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Cautionary statement concerning forward-looking statements
  
    
    changes in general economic, business, political, legal, social or other conditions in
Argentina;
    
    inflation;
    
    changes in interest rates and the cost of deposits;
    
    government regulation;
    
    adverse legal or regulatory disputes or proceedings;
    
    credit and other risks of lending, such as increases in defaults by borrowers;
    
    fluctuations and declines in the value of Argentine public debt;
    
    competition in banking, financial services and related industries;
    
    deterioration in regional and national business and economic conditions in Argentina;
    
    fluctuations and declines in the exchange rate of the peso; and
    
    the risk factors discussed under Item 3.D  Risk factors.
    ii




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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 31,2003(1)
    
    
    2004(2)
    
    
    2005(3)
    
    
    2006(3) (4)
    
    
    2007(in thousands of pesos, except for shares,earnings per share and dividends per share)Consolidated Income StatementCentral Bank Rules:Financial income
    
    
    419,900
    
    
    
    427,891
    
    
    
    749,583
    
    
    
    1,155,207
    
    
    
    1,890,422Financial expense
    
    
    (241,152
    )
    
    
    (133,204
    )
    
    
    (302,909
    )
    
    
    (394,897
    )
    
    
    (805,265
    )Gross intermediation margin
    
    
    178,748
    
    
    
    294,687
    
    
    
    446,674
    
    
    
    760,310
    
    
    
    1,085,157Provision for loan losses
    
    
    (35,009
    )
    
    
    (36,467
    )
    
    
    (70,309
    )
    
    
    (59,773
    )
    
    
    (94,717
    )Service charge income
    
    
    125,722
    
    
    
    154,425
    
    
    
    302,758
    
    
    
    452,232
    
    
    
    662,326Service charge expense
    
    
    (20,005
    )
    
    
    (24,963
    )
    
    
    (59,510
    )
    
    
    (93,323
    )
    
    
    (150,282
    )Administrative expense
    
    
    (221,796
    )
    
    
    (254,936
    )
    
    
    (443,026
    )
    
    
    (652,457
    )
    
    
    (957,043
    )Other income
    
    
    240,622
    
    
    
    109,581
    
    
    
    218,884
    
    
    
    234,807
    
    
    
    183,525Other expense
    
    
    (63,257
    )
    
    
    (48,651
    )
    
    
    (98,683
    )
    
    
    (137,317
    )
    
    
    (139,338
    )Income Tax
    
    
    (833
    )
    
    
    (699
    )
    
    
    (34,042
    )
    
    
    (76,961
    )
    
    
    (92,345
    )Monetary Loss
    
    
    (4,343
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Minority Interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,178
    )
    
    
    (2,083
    )Net income
    
    
    199,849
    
    
    
    192,977
    
    
    
    262,746
    
    
    
    424,340
    
    
    
    495,200Net income per share (5)
    
    
    0.33
    
    
    
    0.32
    
    
    
    0.43
    
    
    
    0.64
    
    
    
    0.72Dividends per share
    
    
    
    
    
    
    0.10
    
    
    
    0.05
    
    
    
    0.10
    
    
    
    0.15Number of shares outstanding (in thousands)
    
    
    608,943
    
    
    
    608,943
    
    
    
    608,943
    
    
    
    683,943
    
    
    
    683,979
    (6)U.S. GAAP:(7)Net income before extraordinary items
    
    
    313,371
    
    
    
    94,229
    
    
    
    463,795
    
    
    
    357,959
    
    
    
    384,040Extraordinary Gain
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,705
    
    
    
    Net income
    
    
    313,371
    
    
    
    94,229
    
    
    
    463,795
    
    
    
    399,664
    
    
    
    384,040Net income per share before extraordinary item(s)
    
    
    0.59
    
    
    
    0.15
    
    
    
    0.76
    
    
    
    0.54
    
    
    
    0.56Net income per share for extraordinary gain
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.06
    
    
    
    Total net income per share (8)
    
    
    0.59
    
    
    
    0.15
    
    
    
    0.76
    
    
    
    0.60
    
    
    
    0.56Weighted average number of shares outstanding
(in thousands)
    
    
    526,750
    
    
    
    608,943
    
    
    
    608,943
    
    
    
    666,478
    
    
    
    683,952
 (1)
    
    In constant pesos as of February 28, 2003.(2)
    
    Nuevo Banco Suquía merged with and into Banco Macro from December 22, 2004.(3)
    
    See note 4.2. to our audited consolidated financial statements for the year ended December 31,
2007.(4)
    
    Banco del Tucumán and Nuevo Banco Bisel consolidated with Banco Macro from May 5, 2006 and
August 11, 2006, respectively.(5)
    
    Net income in accordance with Argentine Banking GAAP divided by weighted average number
of shares.(6)
    
    Includes 36 pending issuance or distribution.(7)
    
    See note 35 to our audited consolidated financial statements for the year ended December 31,
2007 for a summary of significant differences between Central Bank Rules and U.S. GAAP.(8)
    
    Net income in accordance
with U.S. GAAP divided by weighted average number of shares.  1




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As of December 31,(in thousands of pesos)2003(1)
    
    
    2004(2)
    
    
    2005(3)
    
    
    2006(3) (4)
    
    
    2007Consolidated Balance SheetCentral Bank Rules:AssetsCash and due from banks
    
    
    674,300
    
    
    
    1,372,261
    
    
    
    1,189,129
    
    
    
    2,626,908
    
    
    
    3,117,426Government and private securities
    
    
    2,155,766
    
    
    
    2,106,737
    
    
    
    2,991,764
    
    
    
    3,222,955
    
    
    
    3,950,725Loans:to the non-financial government sector
    
    
    365,549
    
    
    
    809,577
    
    
    
    645,342
    
    
    
    774,273
    
    
    
    732,481to the financial sector
    
    
    17,835
    
    
    
    81,812
    
    
    
    80,511
    
    
    
    436,930
    
    
    
    161,702to the non-financial private sector and foreign residents
    
    
    723,619
    
    
    
    2,208,996
    
    
    
    2,948,799
    
    
    
    5,524,483
    
    
    
    9,335,656Allowances for loan losses
    
    
    (56,279
    )
    
    
    (225,340
    )
    
    
    (247,532
    )
    
    
    (208,581
    )
    
    
    (220,422
    )Other assets
    
    
    1,144,237
    
    
    
    2,443,714
    
    
    
    1,879,809
    
    
    
    2,128,004
    
    
    
    2,703,678Total assets
    
    
    5,025,027
    
    
    
    8,797,757
    
    
    
    9,487,822
    
    
    
    14,504,972
    
    
    
    19,781,246Average assets
    
    
    4,356,792
    
    
    
    5,705,542
    
    
    
    9,357,401
    
    
    
    11,791,622
    
    
    
    17,713,916Liabilities and shareholders equityDeposits:from the non-financial government sector
    
    
    382,195
    
    
    
    809,764
    
    
    
    822,687
    
    
    
    1,295,630
    
    
    
    1,774,121from the financial sector
    
    
    11,909
    
    
    
    4,445
    
    
    
    5,208
    
    
    
    5,078
    
    
    
    13,310from the non-financial private sector
    
    
    2,633,140
    
    
    
    4,504,788
    
    
    
    5,737,431
    
    
    
    8,770,309
    
    
    
    11,803,718Other liabilities from financial intermediation and other liabilities
    
    
    559,450
    
    
    
    1,974,786
    
    
    
    1,241,793
    
    
    
    1,426,047
    
    
    
    2,813,065Subordinated corporate bond
    
    
    24,200
    
    
    
    16,416
    
    
    
    12,047
    
    
    
    507,844
    
    
    
    490,695Items pending allocation
    
    
    3,783
    
    
    
    4,554
    
    
    
    854
    
    
    
    2,052
    
    
    
    1,644Provisions
    
    
    285,128
    
    
    
    225,699
    
    
    
    178,150
    
    
    
    104,870
    
    
    
    164,347Minority interest in subsidiaries
    
    
    3
    
    
    
    3
    
    
    
    
    
    
    
    78,045
    
    
    
    12,640Total liabilities
    
    
    3,899,808
    
    
    
    7,540,455
    
    
    
    7,998,170
    
    
    
    12,189,875
    
    
    
    17,073,540Shareholders equity
    
    
    1,125,219
    
    
    
    1,257,302
    
    
    
    1,489,652
    
    
    
    2,315,097
    
    
    
    2,707,706Average shareholders equity
    
    
    949,023
    
    
    
    1,179,611
    
    
    
    1,333,163
    
    
    
    1,915,245
    
    
    
    2,456,353U.S. GAAP:(5)Shareholders equity
    
    
    735,386
    
    
    
    857,666
    
    
    
    1,191,692
    
    
    
    1,956,242
    
    
    
    2,222,361
 (1)
    
    In constant pesos as of February 28, 2003.(2)
    
    Nuevo Banco Suquía
merged with and into Banco Macro from December 22, 2004.(3)
    
    See note 4.2. to our audited consolidated financial statements for the year ended December 31,
2007.(4)
    
    Banco del Tucumán and Nuevo Banco Bisel consolidated with Banco Macro from May 5, 2006 and
August 11, 2006, respectively.(5)
    
    See note 35 to our audited consolidated financial statements for the year ended December 31,
2007 for a summary of significant differences between Central Bank Rules and U.S. GAAP.  2




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As of and for the year ended December 31,2003(1)
    
    
    2004(2)
    
    
    2005(3)
    
    
    2006(3)(4)
    
    
    2007Selected consolidated ratios:Profitability and performanceNet interest margin(%)(5)
    
    
    6.84
    
    
    
    6.37
    
    
    
    5.23
    
    
    
    7.11
    
    
    
    6.85Fee income ratio(%)(6)
    
    
    41.29
    
    
    
    34.38
    
    
    
    40.40
    
    
    
    37.30
    
    
    
    37.90Efficiency ratio(%)(7)
    
    
    72.85
    
    
    
    56.77
    
    
    
    59.11
    
    
    
    53.81
    
    
    
    54.77Ratio of earnings to fixed charges (excluding interest on deposits)(8)
    
    
    3.96
    x
    
    
    5.69
    x
    
    
    3.01
    x
    
    
    6.76
    x
    
    
    4.28
    xRatio of earnings to fixed charges (including interest on deposits)(9)
    
    
    2.26
    x
    
    
    3.02
    x
    
    
    2.14
    x
    
    
    2.49
    x
    
    
    1.88
    xFee income as a percentage of administrative expense(%)
    
    
    56.68
    
    
    
    60.56
    
    
    
    68.34
    
    
    
    69.31
    
    
    
    69.21Return on average equity(%)
    
    
    21.06
    
    
    
    16.36
    
    
    
    19.71
    
    
    
    22.16
    
    
    
    20.16Return on average assets(%)
    
    
    4.59
    
    
    
    3.38
    
    
    
    2.81
    
    
    
    3.60
    
    
    
    2.80LiquidityLoans as a percentage of total deposits(%)
    
    
    36.57
    
    
    
    58.29
    
    
    
    55.97
    
    
    
    66.88
    
    
    
    75.27Liquid assets as a percentage of total deposits(%)(10)
    
    
    65.12
    
    
    
    53.69
    
    
    
    58.64
    
    
    
    61.92
    
    
    
    53.21CapitalTotal equity as a percentage of total assets(%)
    
    
    22.39
    
    
    
    14.29
    
    
    
    15.70
    
    
    
    15.96
    
    
    
    13.69Regulatory capital as a percentage of risk-weighted assets(%)
    
    
    43.79
    
    
    
    35.71
    
    
    
    31.03
    
    
    
    31.31
    
    
    
    26.81Asset QualityNon-performing loans as a percentage of total loans(%)(11)
    
    
    8.91
    
    
    
    6.50
    
    
    
    5.34
    
    
    
    2.01
    
    
    
    1.55Allowances as a percentage of total loans
    
    
    5.08
    
    
    
    7.27
    
    
    
    6.74
    
    
    
    3.10
    
    
    
    2.15Allowances as a percentage of non-performing loans(%)(11)
    
    
    57.07
    
    
    
    111.75
    
    
    
    126.20
    
    
    
    154.25
    
    
    
    138.77Differences due to court orders (Amparos)as a percentage of equity(%)
    
    
    4.0
    
    
    
    4.0
    
    
    
    2.9
    
    
    
    3.23
    
    
    
    3.73OperationsNumber of branches
    
    
    150
    
    
    
    256
    
    
    
    254
    
    
    
    433
    
    
    
    427Number of employees
    
    
    2,814
    
    
    
    4,772
    
    
    
    5,054
    
    
    
    7,585
    
    
    
    7,868
 (1)
    
    In constant pesos as of February 28, 2003.(2)
    
    Nuevo Banco Suquía merged with and into Banco Macro from December 22, 2004.(3)
    
    See note 4.2. to our audited consolidated financial statements for the year ended December 31,
2007.(4)
    
    Banco del Tucumán and Nuevo Banco Bisel consolidated with Banco Macro from May 5, 2006 and
August 11, 2006, respectively.(5)
    
    Net interest income divided by average interest earning assets.(6)
    
    Service charge income divided by the sum of gross intermediation margin and service charge income.(7)
    
    Administrative expenses divided by the sum of gross intermediation margin and service charge income.(8)
    
    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.(9)
    
    For the purpose of computing the ratio of earnings to fixed charges including interest on
deposits, earnings consist of income before income taxes plus fixed charges; fixed charges
including gross interest on deposits is equal to interest expense.(10)
    
    Liquid assets include cash, cash collateral, LEBACs and NOBACs, and interbank loans. Since
2004, we have included overnight loans to highly rated companies.(11)
    
    Non-performing loans include all loans to borrowers classified as 3-with problems/medium
risk, 4-with high risk of insolvency/high risk, 5-irrecoverable and 6-irrecoverable by
technical decision under the Central Bank loan classification system.  3




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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 occur, they may materially harm our business and our financial
condition and results of operations. As a result, the market price of our Class B shares or our
ADSs or our notes could decline and you could lose part or all of your investment.
 Investors should carefully read this annual report in its entirety. They should also take into
account and evaluate, among other things, their own financial circumstances, their investment
goals, and the following risk factors.
 Risks relating to Argentina
 Argentinas current growth and stabilization may not be sustainable
  
    
    the availability of long-term fixed rate credit remains low;
    
    investment as a percentage of GDP remains low;
    
    the current fiscal surplus could become a fiscal deficit;
    
    the current trade surplus could reverse into a trade deficit;
    
    inflation has risen recently and threatens to accelerate;
    
    the regulatory environment continues to be uncertain;
    
    the countrys public debt remains high and international financing is limited; and
    
    the recovery has depended to some extent on:
 (i)
    
    high commodity prices, which are volatile and outside the control of the country; and(ii)
    
    excess capacity, which has been reduced considerably.
  Inflation may rise again, causing adverse effects on the Argentine long-term credit markets as well
as the Argentine economy generally
    4




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Argentinas ability to obtain financing from international markets is limited, which may impair its
ability to implement reforms and foster economic growth
    Significant devaluation of the peso against the U.S. dollar may adversely affect the Argentine
economy as well as our financial performance
   Significant appreciation of the peso against the U.S. dollar may adversely affect the Argentine
economy
  Government measures to preempt, or in response to, social unrest may adversely affect the Argentine
economy
   5




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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
  The Argentine economy could be adversely affected by economic developments in other global markets
   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 recovery of the financial system depends upon the ability of financial institutions, including
us, to retain the confidence of depositors
   The asset quality of financial institutions, including us, is fragile due to high exposure to
public sector debt
   6




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Letras del
Banco Central Notas del Banco Central
 Our asset quality and that of other financial institutions may deteriorate if the Argentine private
sector does not fully recover
  Limitations on enforcement of creditors rights in Argentina may adversely affect financial
institutions
  Risks Relating to Us
 Our target market may be the most adversely affected by economic recessions
  Our controlling shareholders have the ability to direct our business and their interests could
conflict with yours
  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.
  7




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We depend on key personnel for our current and future performance
  Increased competition and consolidation in the banking industry may adversely affect our operations
   Reduced spreads without corresponding increases in lending volumes could adversely affect our
profitability
  Differences in the accounting standards between Argentina and certain countries with highly
developed capital markets, such as the United States, may make it difficult to compare our
financial statements and reported earnings with companies in other countries and the United States
  Risks relating to our Class B Shares and the ADSs
 Holders of our Class B shares and the ADSs may not receive any dividends
  Holders of our Class B shares and the ADSs located in the United States may not be able to exercise
preemptive rights
   8




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Non-Argentine companies that own our Class B shares directly and not as ADSs may not be able to
exercise their rights as shareholders unless they are registered in Argentina
 Inspección General de Justicia,
 You may not be able to sell your ADSs at the time or the price you desire because an active or
liquid market may not develop
  The relative volatility and illiquidity of the Argentine securities markets may substantially limit
your ability to sell Class B shares underlying the ADSs at the price and time you desire
  Our shareholders may be subject to liability for certain votes of their securities
  Our Class B shares or the ADSs might be characterized as stock in a ''passive foreign investment
company for U.S. federal income tax purposes
 Risks relating to our Notes
 The notes are effectively subordinated to our secured creditors and our depositors
 pari passu
 Banco Central de la República Argentina
   9




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##### Table of Contents



Exchange controls and restrictions on transfers abroad may impair your ability to receive payments
on the notes
   The
notes under our medium-term note program will be subject to transfer restrictions which could
limit your ability to resell your notes
  We may redeem the notes prior to maturity
  As a financial institution, any bankruptcy proceeding against us would be subject to intervention
by the Central Bank, which may limit remedies otherwise available and extend the duration of
proceedings
  Holders of notes may find it difficult to enforce civil liabilities against us or our directors,
officers and controlling persons
 domicilio social
 Risk relating to our 9.75% Fixed/Floating Rate Non-Cumulative Junior Subordinated Bonds Due 2036
(the 2036 Notes)
 Interest on the Notes may be limited to the extent we do not have sufficient Distributable Amounts
    10




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##### Table of Contents



We may be prevented by the Central Bank or Argentine banking regulations from making interest or
other payments on or in respect of the Notes
   The Notes are unsecured and subordinated and, in the event of our bankruptcy, the Notes will rank
junior to our unsubordinated obligations and certain of our subordinated obligations
   If we do not satisfy our obligations under the 2036 Notes, your remedies will be limited
  The ratings of the Notes may be lowered or withdrawn depending on various factors, including the
rating agencys assessment of our financial strength and Argentine sovereign risk
  The
U.S. federal income tax treatment of the 2036 Notes is unclear
   11




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##### Table of Contents



Risks relating to our 10.750% Argentine Peso-Linked Notes Due 2012 (the 2012 Notes)
 A devaluation of the Argentine peso will result in a loss of principal and interest in U.S. dollar
terms, which could affect our 2012 Notes
  In circumstances where we can satisfy our payment obligations in respect of the 2012 Notes by
transferring Argentine pesos to accounts located in Argentina, you may not be able to obtain U.S.
dollars or transfer funds outside Argentina
  Certain definitions
 pari passu
     
 Item 4. Information on the Company
 A. History and development of the company
 Overview
 sociedades anónimas
   12




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##### Table of Contents



Our history
 Banco Macro
    Banco Bansud
   Banco Macro Bansud
  Scotiabank Quilmes
  Nuevo Banco Suquía
      13




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##### Table of Contents



Banco Empresario de Tucumán
  Banco del Tucumán
  Nuevo Banco Bisel
      B. Business Overview
 
 
    
    Ps.19,781.2 million (US$6,277.8 million) in total assets;
    
    Ps.9,335.6 million (US$2,962.7 million) in loans to the non-financial private sector;
    
    Ps.13,591.1 million (US$4,313.3 million) in total deposits;
    
    approximately 2,107,500 retail customers and 7,100 corporate customers that provide us
with approximately 2.1 million clients; and
    
    approximately 796,000 employee payroll accounts for private sector customers and
provincial governments.
   14




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##### Table of Contents



Plan Sueldo Plan Sueldo
  The Argentine economic recovery
    Our competitive strengths
  
    
    Strong financial position and consistent profitability. We believe we have emerged from
the economic crisis as one of the strongest banks in Argentina, as measured by
profitability and balance sheet strength.
    
    As of December 31, 2007, we have achieved profitability for the last 24 consecutive
quarters, the only bank in Argentina to do so, with a return on average equity of 21.1%,
16.4%, 19.7%, 22.2% and 20.2% for 2003, 2004, 2005, 2006 and 2007, compared to -23.6%,
-3.0%, 7.5%, 14.8%, and 11.2% respectively, for the Argentine banking system as a whole.
    
    Our shareholders equity at December 31, 2007 and 2006, as calculated under Central
Bank Rules, was Ps. 2,707.7 million and Ps.2,315.1 million, respectively, and our
shareholders equity under U.S. GAAP at December 31, 2007 and 2006 was Ps. 2,222.4 and
Ps.1,956.2 million, respectively.
    
    Strong presence in fast-growing target customer market. We have achieved a leading
position with low- and middle-income individuals and among small and medium-sized
businesses, generally located outside of the City of Buenos Aires, which have been
relatively underserved by the banking system. As of December 31, 2007, loans for less than
Ps.20,000 accounted for 39% of our total private sector loans, almost double the
corresponding percentage for the financial system as a whole 19.8%. Based on our
experience, this target market offers significant growth opportunities and a stable base
of depositors.
    
    High exposure to export-led growth. Given the geographical location of the customers we
target, we have acquired banks with a large number of branches outside of the City of
Buenos Aires with the aim of completing our national coverage. Therefore, we are currently
the leading bank, based on the number of branches, in the Argentine provinces of Salta,
Jujuy, Tucumán and Misiones and one of the leading banks in Córdoba, Santa Fe, Mendoza,
Entre Ríos, Río Negro, Tierra del Fuego and Neuquén. Most of these provinces engage in
economic activities primarily concentrated in areas such as agriculture, mining, cargo
transportation, edible oils, ranching and tourism, which have been benefiting from the
export-driven growth in the Argentine economy as a result of the devaluation of the peso.
  15




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##### Table of Contents




    
    Largest private-sector branch network in Argentina. With 427 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 80% 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 crisis. At the end of the freeze on deposits, or
corralón, our total deposits increased 51% during the twelve months up to April 2003,
while, deposits in the Argentine banking system, as a whole, grew by only 11% during that
period. We believe that our customers are loyal to us due to our presence in traditionally
underserved markets and to our Plan Sueldo payroll services. We have benefited from
Argentine regulations that require all employees to maintain Plan Sueldo accounts for the
direct deposit of their wages. In addition, we emphasize face-to-face relationships with
our customers and offer them personalized advice.
    
    Exclusive financial agent for four Argentine provinces. We perform financial agency
services for the governments of the provinces of Salta, Jujuy, Misiones and Tucumán in
northern Argentina. As a result, each provincial governments bank accounts are held in
our bank and we provide all their employees with Plan Sueldo accounts, giving us access to
substantial low cost funding and a large number of loyal customers.
    
    Strong and experienced management team and committed shareholders. We are led by a
committed group of shareholders who have transformed our bank from a small wholesale bank
to one of the strongest and largest banks in Argentina. Jorge Horacio Brito and Delfín
Jorge Ezequiel Carballo, our controlling shareholders, have active senior executive roles
in our management and each possesses more than 20 years of experience in the banking
industry.
 Our strategy
    
    
    Focus on underserved markets with strong growth potential. We intend to continue
focusing on both low- and middle-income individuals and small and medium-sized businesses,
most of which have traditionally been underserved by the Argentine banking system and are
generally located outside of the City of Buenos Aires, where competition is relatively
weaker and where we have achieved a leading presence. We believe that these markets offer
attractive opportunities given the low penetration of banking services and limited
competition. We believe the provinces outside of the City of Buenos Aires that we serve
are likely to grow faster than the Argentine economy as a whole because their
export-driven economies have benefited from the devaluation of the peso and higher prices
for agricultural products and commodities.
    
    Further expand our customer base. We intend to continue growing our customer base,
which is essential to increasing interest and fee-based revenues. To attract new customers
we intend to:
 
    
    Utilize our extensive branch network. We intend to utilize our extensive branch
network, which we consider our key distribution channel, to market our products and
services to our entire customer base. We utilize a personalized approach to attract
new customers by providing convenient and personalized banking services close to
their homes and facilities.
  16




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##### Table of Contents




    
    Offer medium- and long-term credit. We intend to capitalize on the increased
demand for long-term credit that we believe will accompany the expected continued
economic growth in Argentina. We intend to use our strong liquidity and our capital
base to offer a more readily available range of medium- and long-term credit
products than our competitors.
    
    Expand Plan Sueldo payroll services. We will continue to actively market our Plan
Sueldo payroll services, emphasizing the benefits of our extensive network for
companies with nationwide or regional needs.
    
    Expand our financial agency services to new provinces. We intend to take
advantage of our experience as a financial agent to provincial governments in
Argentina to expand these services into new provinces.
    
    Offer personalized service. We offer our clients a menu of products and
personalized, face-to-face advice to help them select the banking services that best
respond to their needs.
 
    
    Focus on efficiency and cost control. We intend to increase our efficiency. In
particular, we expect to expand lending to Nuevo Banco Bisels customers, thereby creating
new economies of scale, and reduce costs in connection with the integration of both
entities. We were upgrading our information systems and other technology to reduce further
our operating costs and to support larger transaction volumes nationally. We have
completed the integration of Nuevo Banco Suquía during the second half of 2007 and we
expect to complete the integration of Nuevo Banco Bisel during the second half of 2009.
    
    Extend existing corporate relationships to their distributors and suppliers. We have
established relationships with major corporations in Argentina and will focus our
marketing efforts on providing services to their distributors, suppliers, customers and
employees, including providing working capital financing and Plan Sueldo payroll services.
    
    Increase cross-selling. We plan to increase cross-selling of products and services to
our existing clients. Since almost all of our clients have a checking and savings account,
we have a significant opportunity to expand our relationships with them through other
products such as credit cards, loans and insurance. For example, strong cross-selling
opportunities lie with our Plan Sueldo clients, of whom only 24% currently have personal
loans from us.
 Our products and services
  Retail Customers
 Overview
      17




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##### Table of Contents



Savings and checking accounts and time deposits
  Approximate numberof retail accountsProduct
    
    (as of December 31, 2007)SavingsTotal savings accounts
    
    
    1,467,222Plan Sueldo(private sector)
    
    
    526,021Plan Sueldo(public sector)
    
    
    270,236Retirees
    
    
    276,241Open market
    
    
    394,724CheckingChecking accounts
    
    
    106,303Electronic account accessDebit cards
    
    
    1,279,471
 Lending products and services
 Macroadelantos,
 Loans to retail customers (in pesos except where noted)(as of December 31, 2007)CreditPersonal
    
    
    
    
    
    Mortgage
    
    
    
    
    
    
    Pledged
    
    
    cardloans
    
    
    Documents(1)
    
    
    loans
    
    
    Overdrafts
    
    
    loans(2)
    
    
    loans
    
    
    OthersPercentage of gross retail private
sector loan portfolio
    
    
    62.3
    %
    
    
    6.0
    %
    
    
    8.2
    %
    
    
    4.4
    %
    
    
    4.1
    %
    
    
    13.5
    %
    
    
    1.5
    %Total customers with outstanding loans
    
    
    446,860
    
    
    
    8,575
    
    
    
    9,093
    
    
    
    169,780
    
    
    
    5,194
    
    
    
    452,593
    
    
    
    2,403Average gross loan amount
    
    
    7,256
    
    
    
    36,176
    
    
    
    47,117
    
    
    
    1,363
    
    
    
    40,790
    
    
    
    1,555
    
    
    
    33,225
 (1)
    
    Factoring, check cashing advances and loans with promissory notes.(2)
    
    Primarily secured auto loans.  Corporate Customers
 Overview
   18




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##### Table of Contents



Plan Sueldo payroll services
 Macrosueldos,
 Lending products and services
   Short-term:
 Medium- to long-term:
   Loans to companies in excess ofPs.20,000, (as of December 31, 2007)Percentage ofcorporate loan(in millions of pesos)
    
    
    portfolioOverdrafts
    
    
    1,290.5
    
    
    
    31.3
    %Documents(1)
    
    
    780.3
    
    
    
    18.9
    %Pledged loans(2)
    
    
    149.8
    
    
    
    3.6
    %Mortgage loans
    
    
    219.9
    
    
    
    5.3
    %Other(3)
    
    
    1,668.8
    
    
    
    40.4
    %Corporate credit cards
    
    
    18.0
    
    
    
    0.5
    %Total
    
    
    4,127.3
    
    
    
    100.0
    %
 (1)
    
    Factoring, check cashing advances and promissory notes.(2)
    
    Primarily securing cargo transportation equipment.(3)
    
    Mostly structured loans (medium- and long-term). Transaction services
  Payments to suppliers.
  19




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Collection services.
 Datanet and Interpymes.
  Tax collection and financial agency services.
 Our distribution network
  As of December 31, 2007Banco MacroMarket Share of% of
    
    
    Total Branches inProvince
    
    Branches
    
    
    Total
    
    
    Each ProvinceCity of Buenos Aires
    
    
    24
    
    
    
    5.62
    %
    
    
    3.09
    %Buenos Aires (rest)
    
    
    53
    
    
    
    12.41
    %
    
    
    4.28
    %Catamarca
    
    
    1
    
    
    
    0.23
    %
    
    
    4.76
    %Chaco
    
    
    2
    
    
    
    0.47
    %
    
    
    3.28
    %Chubut
    
    
    4
    
    
    
    0.94
    %
    
    
    5.13
    %Córdoba
    
    
    73
    
    
    
    17.10
    %
    
    
    18.43
    %Corrientes
    
    
    3
    
    
    
    0.70
    %
    
    
    4.92
    %Entre Ríos
    
    
    6
    
    
    
    1.41
    %
    
    
    5.04
    %Formosa
    
    
    
    
    
    
    0.00
    %
    
    
    0.00
    %Jujuy
    
    
    15
    
    
    
    3.51
    %
    
    
    51.72
    %La Pampa
    
    
    2
    
    
    
    0.47
    %
    
    
    1.89
    %La Rioja
    
    
    2
    
    
    
    0.47
    %
    
    
    7.69
    %Mendoza
    
    
    13
    
    
    
    3.04
    %
    
    
    9.29
    %Misiones
    
    
    35
    
    
    
    8.20
    %
    
    
    53.85
    %Neuquén
    
    
    4
    
    
    
    0.94
    %
    
    
    5.71
    %Río Negro
    
    
    7
    
    
    
    1.64
    %
    
    
    11.29
    %Salta
    
    
    24
    
    
    
    5.62
    %
    
    
    48.00
    %San Juan
    
    
    1
    
    
    
    0.23
    %
    
    
    2.78
    %San Luis
    
    
    1
    
    
    
    0.23
    %
    
    
    2.44
    %Santa Cruz
    
    
    2
    
    
    
    0.47
    %
    
    
    5.26
    %Santa Fe
    
    
    124
    
    
    
    29.04
    %
    
    
    28.70
    %Santiago del Estero
    
    
    1
    
    
    
    0.23
    %
    
    
    2.22
    %Tierra del Fuego
    
    
    2
    
    
    
    0.47
    %
    
    
    11.76
    %Tucumán
    
    
    28
    
    
    
    6.56
    %
    
    
    46.67
    %TOTAL
    
    
    427
    
    
    
    100.0
    %
    
    
    10.70
    %
 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;
  20




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##### Table of Contents




    
    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.
    
    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
  Macroadelantos,
 Credit risk rating
 5 to 7.
 Credit monitoring and review process
  Technology
   
    
    defining long-term data processing solutions to ensure consolidation of data processing
centers, particularly in light of our acquisitions of Nuevo Banco Suquía and Nuevo Banco
Bisel;
 
    
    unifying policies (operations, data processing systems and security), technological
standards, working operational models and metrics; and
 
    
    upgrading our technology to maintain market level security standards.
 Competition
   21




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##### Table of Contents



Banking industry
  Scale
  2003(1)
    
    
    2004(1)
    
    
    2005
    
    
    2006
    
    
    2007(millions of pesos)Total Assets(2)
    
    
    185,740
    
    
    
    200,179
    
    
    
    218,453
    
    
    
    244,070
    
    
    
    285,719Total Deposits(2)
    
    
    85,758
    
    
    
    108,151
    
    
    
    127,382
    
    
    
    155,345
    
    
    
    191,653Gross Private Sector Loans(2)
    
    
    34,205
    
    
    
    36,917
    
    
    
    47,972
    
    
    
    66,896
    
    
    
    93,091
 Source: Central Bank
 (1)
    
    In constant pesos as of February 28, 2003.(2)
    
    Twelve-month average. Profitability
   2003(1)
    
    
    2004(1)
    
    
    2005
    
    
    2006
    
    
    2007Net (loss) income (in millions of pesos)
    
    
    (5,487
    )
    
    
    (657
    )
    
    
    1,932
    
    
    
    4,473
    
    
    
    3,961Return on average equity
    
    
    (23.6
    )%
    
    
    (3
    )%
    
    
    7.5
    %
    
    
    14.8
    %
    
    
    11.2
    %Return on average assets
    
    
    (3.0
    )%
    
    
    (0.3
    )%
    
    
    0.9
    %
    
    
    1.8
    %
    
    
    1.4
    %
 Source: Central Bank
 (1)
    
    In millions of constant pesos as of February 28, 2003. Asset Quality
  2003
    
    
    2004
    
    
    2005
    
    
    2006
    
    
    2007Non-performing Credit Portfolio
    
    
    17.7
    %
    
    
    10.7
    %
    
    
    5.2
    %
    
    
    3.4
    %
    
    
    2.7
    %Non-performing Credit Portfolio  Private Sector
    
    
    33.5
    %
    
    
    18.6
    %
    
    
    7.6
    %
    
    
    4.5
    %
    
    
    3.2
    %
 Source: Central Bank
  22




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##### Table of Contents



Competitive landscape
  Market Share(% share of totalprivate sector loansPrivate Sector Loans
    
    Ps.
    
    
    for the Argentine(As of December 31, 2007)
    
    Million
    
    
    financial system)1 BANCO DE LA NACION ARGENTINA (1)
    
    
    11,718
    
    
    
    10.4
    %2 BANCO SANTANDER RIO S.A.
    
    
    11,121
    
    
    
    9.9
    %3 BANCO MACRO S.A.(2)
    
    
    9,336
    
    
    
    8.3
    %4 BANCO DE GALICIA Y DE BUENOS AIRES S.A.
    
    
    8,586
    
    
    
    7.6
    %5 BBVA BANCO FRANCES S.A
    
    
    8,437
    
    
    
    7.5
    %6 BANCO DE LA PROVINCIA DE BUENOS AIRES(1)
    
    
    7,549
    
    
    
    6.7
    %7 HSBC BANK ARGENTINA S.A
    
    
    6,243
    
    
    
    5.5
    %8 CITIBANK N.A
    
    
    4,564
    
    
    
    4.1
    %9 BANCO CREDICOOP COOPERATIVO LIMITADO
    
    
    3,968
    
    
    
    3.5
    %10 BANCO HIPOTECARIO S.A.
    
    
    3,955
    
    
    
    3.5
    %OTHER
    
    
    37,074
    
    
    
    33.0
    %TOTAL
    
    
    112,551
    
    
    
    100.0
    %
 Source: Central Bank
 (1)
    
    Public sector banks.(2)
    
    From our consolidated financial statements. Market Share(% share of equityEquity
    
    Ps.
    
    
    for the Argentine(As of December 31, 2007)
    
    Million
    
    
    financial system)1 BANCO DE LA NACION ARGENTINA(1)
    
    
    6,880
    
    
    
    18.7
    %2 BANCO MACRO S.A.(2)
    
    
    2,708
    
    
    
    7.4
    %3 BANCO HIPOTECARIO S.A.
    
    
    2,642
    
    
    
    7.2
    %4 BBVA BANCO FRANCES S.A.
    
    
    2,057
    
    
    
    5.6
    %5 BANCO DE GALICIA Y BUENOS AIRES S.A.
    
    
    1,759
    
    
    
    4.8
    %6 BANCO DE LA PROVINCIA DE BUENOS AIRES(1)
    
    
    1,617
    
    
    
    4.4
    %7 BANCO SANTANDER RIO S.A.
    
    
    1,575
    
    
    
    4.3
    %8 BANCO DE LA CIUDAD DE BUENOS AIRES(1)
    
    
    1,443
    
    
    
    3.9
    %9 BANCO PATAGONIA S.A.
    
    
    1,377
    
    
    
    3.7
    %10 HSBC BANK ARGENTINA S.A.
    
    
    1,264
    
    
    
    3.4
    %OTHER
    
    
    13,489
    
    
    
    36.6
    %TOTAL
    
    
    36,811
    
    
    
    100.0
    %
 Source: Central Bank
 (1)
    
    Public sector banks.(2)
    
    From our consolidated financial statements. Market Share(% share of totalprivate sectordeposits for thePrivate Sector Deposits
    
    Ps.
    
    
    Argentine(As of December 31, 2007)
    
    Million
    
    
    financial system)1 BANCO DE LA NACION ARGENTINA(1)
    
    
    21,181
    
    
    
    13.4
    %2 BANCO SANTANDER RIO S.A.
    
    
    15,103
    
    
    
    9.5
    %3 BBVA BANCO FRANCES S.A.
    
    
    14,828
    
    
    
    9.4
    %4 BANCO DE GALICIA Y BUENOS AIRES S.A.
    
    
    12,629
    
    
    
    8.0
    %5 BANCO DE LA PROVINCIA DE BUENOS AIRES(1)
    
    
    12,228
    
    
    
    7.7
    %6 BANCO MACRO S.A.(2)
    
    
    11,804
    
    
    
    7.4
    %7 HSBC BANK ARGENTINA S.A
    
    
    8,814
    
    
    
    5.6
    %8 CITIBANK N.A.
    
    
    8,140
    
    
    
    5.1
    %9 BANCO DE LA CIUDAD DE BUENOS AIRES(1)
    
    
    7,265
    
    
    
    4.6
    %10 BANCO CREDICOOP COOPERATIVO LIMITADO
    
    
    6,974
    
    
    
    4.4
    %OTHER
    
    
    39,487
    
    
    
    24.9
    %TOTAL
    
    
    158,453
    
    
    
    100.0
    %
 Source: Central Bank
 (1)
    
    Public sector banks.(2)
    
    From our consolidated financial statements.  23




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##### Table of Contents



Net Income
    
    Ps.(12 months ended December 31, 2007)
    
    Million1 BANCO DE LA NACION ARGENTINA(1)
    
    
    7402 BANCO MACRO S.A.(2)
    
    
    4953 BANCO SANTANDER RIO S.A.
    
    
    2664 BBVA BANCO FRANCES S.A.
    
    
    2355 CITIBANK N.A.
    
    
    2346 BANCO DE LA PROVINCIA DE BUENOS AIRES (1)
    
    
    2147 BANCO DE SAN JUAN S.A.
    
    
    2098 NUEVO BANCO DE SANTA FE SOCIEDAD ANONIMA
    
    
    1599 HSBC BANK ARGENTINA S.A.
    
    
    13610 BANCO PATAGONIA S.A.
    
    
    133OTHER
    
    
    969TOTAL
    
    
    3,790
 Source: Central Bank
 (1)
    
    Public sector banks.(2)
    
    From our consolidated financial statements.   As of December 31, 2007Banking System
    
    
    Banco MacroMarket Share(% share oftotal # ofbranches ineachProvince
    
    Branches
    
    
    % of Total
    
    
    Branches
    
    
    % of Total
    
    
    province)CITY OF BUENOS AIRES
    
    
    777
    
    
    
    19.5
    %
    
    
    24
    
    
    
    5.6
    %
    
    
    3.1
    %BUENOS AIRES-REST
    
    
    1,239
    
    
    
    31.1
    %
    
    
    53
    
    
    
    12.4
    %
    
    
    4.3
    %CATAMARCA
    
    
    21
    
    
    
    0.5
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    4.8
    %CHACO
    
    
    61
    
    
    
    1.5
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    3.3
    %CHUBUT
    
    
    78
    
    
    
    2.0
    %
    
    
    4
    
    
    
    1.0
    %
    
    
    5.1
    %CORDOBA
    
    
    396
    
    
    
    9.9
    %
    
    
    73
    
    
    
    17.1
    %
    
    
    18.4
    %CORRIENTES
    
    
    61
    
    
    
    1.5
    %
    
    
    3
    
    
    
    0.7
    %
    
    
    4.9
    %ENTRE RIOS
    
    
    119
    
    
    
    3.0
    %
    
    
    6
    
    
    
    1.4
    %
    
    
    5.0
    %FORMOSA
    
    
    18
    
    
    
    0.5
    %
    
    
    0
    
    
    
    0.0
    %
    
    
    0.0
    %JUJUY
    
    
    29
    
    
    
    0.7
    %
    
    
    15
    
    
    
    3.5
    %
    
    
    51.7
    %LA PAMPA
    
    
    106
    
    
    
    2.7
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    1.9
    %LA RIOJA
    
    
    26
    
    
    
    0.7
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    7.7
    %MENDOZA
    
    
    140
    
    
    
    3.5
    %
    
    
    13
    
    
    
    3.0
    %
    
    
    9.3
    %MISIONES
    
    
    65
    
    
    
    1.6
    %
    
    
    35
    
    
    
    8.2
    %
    
    
    53.8
    %NEUQUÉN
    
    
    70
    
    
    
    1.8
    %
    
    
    4
    
    
    
    1.0
    %
    
    
    5.7
    %RIO NEGRO
    
    
    62
    
    
    
    1.6
    %
    
    
    7
    
    
    
    1.6
    %
    
    
    11.3
    %SALTA
    
    
    50
    
    
    
    1.3
    %
    
    
    24
    
    
    
    5.6
    %
    
    
    48.0
    %SAN JUAN
    
    
    36
    
    
    
    0.9
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    2.8
    %SAN LUIS
    
    
    41
    
    
    
    1.0
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    2.4
    %SANTA CRUZ
    
    
    38
    
    
    
    1.0
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    5.3
    %SANTA FE
    
    
    432
    
    
    
    10.8
    %
    
    
    124
    
    
    
    29.0
    %
    
    
    28.6
    %SANTIAGO DEL ESTERO
    
    
    45
    
    
    
    1.1
    %
    
    
    1
    
    
    
    0.2
    %
    
    
    2.2
    %TIERRA DEL FUEGO
    
    
    17
    
    
    
    0.4
    %
    
    
    2
    
    
    
    0.5
    %
    
    
    11.8
    %TUCUMAN
    
    
    60
    
    
    
    1.4
    %
    
    
    28
    
    
    
    6.6
    %
    
    
    46.7
    %TOTAL
    
    
    3,987
    
    
    
    100.0
    %
    
    
    427
    
    
    
    100.0
    %
    
    
    10.7
    %
  24




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##### Table of Contents



MarketMarket
    
    
    
    
    
    
    Share of
    
    
    
    
    
    
    Market
    
    
    % ofNumber
    
    
    
    
    
    
    Share of
    
    
    Branches in
    
    
    Branches
    
    
    
    
    
    
    Share of
    
    
    Branchesof
    
    
    Total
    
    
    Branches
    
    
    City of
    
    
    in City of
    
    
    Branches
    
    
    Branches
    
    
    in theProvinces
    
    
    Number of
    
    
    in
    
    
    Buenos
    
    
    Buenos
    
    
    in the Rest
    
    
    in Rest of
    
    
    Rest ofServed
    
    
    Branches
    
    
    Argentina
    
    
    Aires
    
    
    Aires
    
    
    of Country
    
    
    Country
    
    
    Country1 BANCO MACRO S.A.
    
    
    23
    
    
    
    427
    
    
    
    11
    %
    
    
    24
    
    
    
    3
    %
    
    
    403
    
    
    
    13
    %
    
    
    94
    %2 BANCO DE LA NACION
ARGENTINA (1)
    
    
    24
    
    
    
    623
    
    
    
    16
    %
    
    
    64
    
    
    
    8
    %
    
    
    559
    
    
    
    17
    %
    
    
    90
    %3 BANCO CREDICOOP
COOPERATIVO
LIMITADO
    
    
    18
    
    
    
    238
    
    
    
    6
    %
    
    
    35
    
    
    
    4
    %
    
    
    203
    
    
    
    6
    %
    
    
    85
    %4 COMPAÑIA FINANCIERA
ARGENTINA S.A.
    
    
    18
    
    
    
    61
    
    
    
    2
    %
    
    
    10
    
    
    
    1
    %
    
    
    51
    
    
    
    2
    %
    
    
    84
    %5 BANCO PATAGONIA S.A.
    
    
    24
    
    
    
    133
    
    
    
    3
    %
    
    
    37
    
    
    
    5
    %
    
    
    96
    
    
    
    3
    %
    
    
    72
    %6 BANCO SANTANDER RIO
S.A.
    
    
    21
    
    
    
    244
    
    
    
    6
    %
    
    
    74
    
    
    
    10
    %
    
    
    170
    
    
    
    5
    %
    
    
    70
    %7 BANCO DE GALICIA Y
BUENOS AIRES S.A.
    
    
    24
    
    
    
    232
    
    
    
    6
    %
    
    
    76
    
    
    
    10
    %
    
    
    156
    
    
    
    5
    %
    
    
    67
    %8 HSBC BANK ARGENTINA
S.A.
    
    
    19
    
    
    
    144
    
    
    
    4
    %
    
    
    50
    
    
    
    6
    %
    
    
    94
    
    
    
    3
    %
    
    
    65
    %9 BBVA BANCO FRANCES
S.A.
    
    
    24
    
    
    
    235
    
    
    
    6
    %
    
    
    83
    
    
    
    11
    %
    
    
    152
    
    
    
    5
    %
    
    
    65
    %10 CITIBANK N.A.
    
    
    16
    
    
    
    60
    
    
    
    2
    %
    
    
    22
    
    
    
    3
    %
    
    
    38
    
    
    
    1
    %
    
    
    63
    %OTHER
    
    
    24
    
    
    
    1,590
    
    
    
    38
    %
    
    
    303
    
    
    
    39
    %
    
    
    1,287
    
    
    
    40
    %
    
    
    81
    %TOTAL
    
    
    24
    
    
    
    3,987
    
    
    
    100.0
    %
    
    
    778
    
    
    
    100.0
    %
    
    
    3,209
    
    
    
    100.0
    %
    
    
    80
    %
 Source: Central Bank and our consolidated financial statements.
 (1)
    
    Public sector banks.(2)
    
    Includes the branches of Banco Macro, Nuevo Banco Suquía, Banco del Tucumán and Nuevo Banco Bisel.(3)
    
    Ranking based on financial institutions which have 50 branches or more and with presence in 15
provinces or more.  25




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##### Table of Contents



Argentine Banking Regulation
 Overview
       Banking regulations
  Permitted activities and investments
 Administradoras de Fondos de Jubilaciones y Pensiones
 Responsabilidad Patrimonial Computable
  26




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##### Table of Contents



Operations and activities that banks are not permitted to perform
  LIQUIDITY AND SOLVENCY REQUIREMENTS
 Minimum capital requirements
   Description of Argentine Tier 1 and Tier 2 Capital Regulations
 Responsabilidad Patrimonial Computable
    Requirements for subordinated debt to be computed as Tier 1 Capital
     27




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##### Table of Contents



pari passu
    Counterpart risk
     Type of Asset
    
    WeightingCash and due from banks
    
    
    0-20
    %Government BondsWith market risk capital requirements
    
    
    0
    %Other domestic bonds (without collateral)
    
    
    100
    %OECD Central bondsrated AA or investment grade
    
    
    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 BCRA, export credit insurance,
documentary credits
    
    
    50
    %Mortgages/Pledges
    
    
    50%-100
    %To the non-financial public sector
    
    
    100
    %To the financial sectorPublic financial entities with the collection of federal taxes as collateral
    
    
    50
    %To foreign financial entities or to financial entities backed by them (rated AA or investment grade)
    
    
    0%-20
    %Other credits from financial intermediation
    
    
    0%-100
    %Assets subject to financial leasing
    
    
    50%-100
    %Other assets
    
    
    0%-100
    %Guarantees and contingent liabilities
    
    
    0%-100
    %
  28




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##### Table of Contents



CAMEL Rating
    
    K Factor1
    
    
    0.972
    
    
    1.003
    
    
    1.054
    
    
    1.105
    
    
    1.15
 Interest rate risk
     Market risk
     Temporary regulations
   29




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##### Table of Contents



Alpha1 (applied
    
    
    Alpha2 (appliedto public sector
    
    
    to interestPeriod
    
    financing)
    
    
    rate risk)January/December 2004
    
    
    0.05
    
    
    
    0.20January/December 2005
    
    
    0.15
    
    
    
    0.40January/December 2006
    
    
    0.30
    
    
    
    0.70January/December 2007
    
    
    0.50
    
    
    
    1.00January/December 2008
    
    
    0.75
    
    
    
    1.00As from January 2009
    
    
    1.00
    
    
    
    1.00
 Consequences of a failure to meet minimum capital requirements
     Minimum cash requirements
       30




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##### Table of Contents



Rate (%)Rate (%)
    
    
    (ForeignItem
    
    (Pesos)
    
    
    Currency)Checking account deposits
    
    
    19
    
    
    
    Savings account deposits
    
    
    19
    
    
    
    30Legal custody accounts, special accounts for savings clubs, Unemployment Fund for
construction industry workers and Salary payment, special checking accounts for legal
entities and social security savings accounts
    
    
    19
    
    
    
    30Other demand deposits and liabilities, including with foreign banks and correspondents,
pension and social security benefits credited by ANSES (Government Social Security
Agency) pending collection and immobilized reserve funds for liabilities covered by these
regulations
    
    
    19
    
    
    
    30Unused balances of advances in checking accounts under formal agreements
    
    
    19Deposits in checking accounts of non-bank financial institutions, computed for purposes
of meeting their required minimum cash reserve
    
    
    100
    
    
    
    100Time deposits, liabilities under acceptances, repurchase agreements, stock-exchange repos
(cauciones y pases bursátiles pasivos), 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
and 13 and 15 of this table:(i) Up to 29 days
    
    
    14
    
    
    
    35(ii) From 30 days to 59 days
    
    
    11
    
    
    
    28(iii) From 60 days to 89 days
    
    
    7
    
    
    
    20(iv) From 90 days to 179 days
    
    
    2
    
    
    
    10(v) From 180 days to 365 days
    
    
    
    
    
    
    6(vi) More than 365 days
    
    
    
    
    
    
    Liabilities owed due to foreign finances
    
    
    
    
    
    
    Securities (including Negotiable Obligations)a- Debt issued from 01/01/02, including restructured liabilities(i) Up to 29 days
    
    
    14
    
    
    
    35(ii) From 30 days to 59 days
    
    
    11
    
    
    
    28(iii) From 60 days to 89 days
    
    
    7
    
    
    
    20(iv) From 90 days to 179 days
    
    
    2
    
    
    
    10(v) From 180 days to 365 days
    
    
    
    
    
    
    6(vi) More than 365 days
    
    
    
    
    
    
    b- OthersLiabilities owing to the Trust Fund for Assistance to Financial and Insurance Institutions
    
    
    
    
    
    
    Demand and time deposits made upon a court order with funds arising from cases pending
before the court, and the related immobilized balances
    
    
    10
    
    
    
    15Deposits as assets of a mutual fund
    
    
    19
    
    
    
    40Special deposits related to inflows of funds. Decree 616/2005
    
    
    
    
    
    
    100Deposits and other liabilities (excluding Fondo de Desempleo para los trabajadores de la
Industria de la Construcción) which return is higher than the 15% of BADLAR rates
average, corresponding to the preceding month
    
    
    100
    
    
    
    Time deposits in pesos, belonging to public sector holders, with the right to opt for
early withdrawal in less than 30 days from its setting up
    
    
    16
    
    
    
    
   (i) Cash (in treasury, in custody at other financial institutions, in transit and in 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 guarantee accounts maintained with the Central Bank for transactions involving cheque
cancelatorio (a check similar to a cashiers check that may be purchased from a bank to pay a
third party).(vii) Special accounts maintained with the Central Bank opened by the ANSES (Argentine Social
Security Administration).(viii) Special accounts maintained by financial institutions with the Central Bank in securities.     31




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##### Table of Contents



Internal liquidity policies of financial institutions
  Credit risk
        Foreign exchange system
     Foreign currency lending capacity
   32




---



##### Table of Contents



General Exchange Position
     Foreign Currency Net Global Position
     Negative foreign currency net global position (liabilities exceeding assets): the limit is 30%
of the Computable Net Worth until December 31, 2006. As from January 1, 2007 (Communications A
4577 and 4598) the limit is 15%, but it can be extended up to 15 p.p. under certain
circumstances: at the same time has recorded a) medium and long term financings in pesos to
non-financial private sector under certain conditions for an amount equivalent to the increase
of said limit; and b) an increase in the minimum capital requirement equivalent to the increase
of the general limit of the negative foreign currency net global position. Positive net global position (assets exceeding liabilities): this limit cannot exceed the lesser of :
 1.
    
    30% of the Computable Net Worth.2.
    
    Own liquid resources (refer to RPC minus fixed assets and loans to
related clients)
   Fixed assets and other items
   
    
    Shares of local companies
    
    Miscellaneous receivables
    
    Property and equipment
    
    Other assets
    
    Organization and development expenses
    
    Goodwill
    
    Financing transactions to related clients.
  33




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##### Table of Contents



Debt classification and loan loss provisions
 Credit portfolio
   Commercial loans classification
  Classification
    
    CriteriaNormal
    
    Borrowers for whom there is no doubt as to their ability to comply with their payment
obligations.Special
tracking 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.Special
tracking under negotiation or with
refinancing agreement
    
    Borrowers who are unable to comply with their obligations as agreed with the bank and
therefore, formally state, at least 60 days before the date on which the payment of
their obligations is due, their intention to refinance such debts. The borrower must
enter into an agreement with the lender within 90 days (if up to two lenders are
involved) or 180 days (if more than two lenders are involved) after the date on which
the obligations became overdue. If no agreement has been reached within the
established deadline, the borrower must be reclassified to the next category below
according to the indicators established for each level.With problems
    
    Borrowers with difficulties honoring their financial obligations under the loan on a
regular basis, which, if uncorrected, may result in losses to the bank.With high risk of insolvency
    
    Borrowers who are highly unlikely to honor their financial obligations under the loan.Irrecoverable
    
    Loans classified as unrecoverable at the time they are reviewed (although the
possibility might exist that such loans might be collected in the future). The
borrower will not meet its financial obligations to the classifying bank.Irrecoverable by technical decision
    
    (a) Borrower has defaulted on its payment obligations under a loan for more than 180
calendar days according to the corresponding report provided by the Central Bank,
which report includes (1) financial institutions liquidated by the Central Bank, (2)
residual entities created as a result of the privatization of public financial
institutions, or in the privatization or dissolution process, (3) financial
institutions whose licenses have been revoked by the Central Bank and find themselves
subject to judicial liquidation or bankruptcy proceedings and (4) trusts in which
SEDESA is a beneficiary, and/or (b) certain kinds of foreign borrowers (including
banks or other financial institutions that are not subject to the supervision of the
Central Bank or similar authority of the country in which they are incorporated) that
are not classified as investment grade by any of the rating agencies approved by
the Central Bank.
  34




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##### Table of Contents



Consumer and housing loans classification
  Classification
    
    CriteriaNormal
    
    If all payments on loans are current or less than 31 calendar days overdue and, in the case
of checking account overdrafts, less than 61 calendar days overdue.Low Risk
    
    Loans upon which payment obligations are overdue for a period of more than 31 and up to 90,
calendar days.Medium Risk
    
    Loans upon which payment obligations are overdue for a period of more than 90 and up to 180
calendar days.High Risk
    
    Loans having payment obligations overdue for more than 180 calendar days and up to one year
or if it is subject to judicial proceedings for default on any of those loans.Irrecoverable
    
    Loans in which payment obligations are more than one year overdue or the debtor is
insolvent or in bankruptcy or liquidation.Irrecoverable by technical decision
    
    Same criteria as for commercial loans in the Irrecoverable by technical decision category.
 Minimum credit provisions
  With Preferred
    
    
    Without PreferredCategory
    
    Guarantees
    
    
    GuaranteesNormal
    
    
    1
    %
    
    
    1
    %Under observation and Low risk
    
    
    3
    %
    
    
    5
    %Under negotiation or refinancing agreement
    
    
    6
    %
    
    
    12
    %With Problems and Medium Risk
    
    
    12
    %
    
    
    25
    %With high risk of insolvency and High Risk
    
    
    25
    %
    
    
    50
    %Irrecoverable
    
    
    50
    %
    
    
    100
    %Irrecoverable by technical decision
    
    
    100
    %
    
    
    100
    %
  Minimum frequency for classification review
  Allowances for loan losses
  Priority rights of depositors
 pro rata
  35




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##### Table of Contents



Mandatory deposit insurance system
  Seguro de Depósitos Sociedad Anónima,
     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, interventor,
  36




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##### Table of Contents



Dissolution and liquidation of financial institutions
   Money laundering
       °
 Merger, consolidation and transfer of goodwill
  Financial System Restructuring Unit
   37




---



##### Table of Contents



C. Organizational Structure
 Subsidiaries
    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 31,2005
    
    
    2006
    
    
    2007Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    AverageAverage
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    NominalBalance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate(in thousands of pesos, except percentages)ASSETSInterest-earning assetsGovernment securities(1)Pesos
    
    
    2,554,126
    
    
    
    204,538
    
    
    
    8.01
    %
    
    
    2,428,667
    
    
    
    284,121
    
    
    
    11.70
    %
    
    
    3,923,881
    
    
    
    421,477
    
    
    
    10.74
    %Dollars
    
    
    143,283
    
    
    
    (11,203
    )
    
    
    (7.82
    %)
    
    
    230,924
    
    
    
    (9,971
    )
    
    
    (4.32
    %)
    
    
    181,080
    
    
    
    15,598
    
    
    
    8.61
    %Total
    
    
    2,697,409
    
    
    
    193,335
    
    
    
    7.17
    %
    
    
    2,659,591
    
    
    
    274,150
    
    
    
    10.31
    %
    
    
    4,104,961
    
    
    
    437,075
    
    
    
    10.65
    %LoansPrivate SectorPesos
    
    
    1,990,060
    
    
    
    285,439
    
    
    
    14.34
    %
    
    
    3,798,073
    
    
    
    576,243
    
    
    
    15.17
    %
    
    
    6,162,786
    
    
    
    1,041,645
    
    
    
    16.90
    %Dollars
    
    
    468,063
    
    
    
    21,889
    
    
    
    4.68
    %
    
    
    715,551
    
    
    
    39,204
    
    
    
    5.48
    %
    
    
    1,228,829
    
    
    
    78,815
    
    
    
    6.41
    %Total
    
    
    2,458,123
    
    
    
    307,328
    
    
    
    12.50
    %
    
    
    4,513,624
    
    
    
    615,447
    
    
    
    13.64
    %
    
    
    7,391,615
    
    
    
    1,120,460
    
    
    
    15.16
    %Public SectorPesos
    
    
    714,207
    
    
    
    102,217
    
    
    
    14.31
    %
    
    
    694,938
    
    
    
    93,427
    
    
    
    13.44
    %
    
    
    767,970
    
    
    
    51,575
    
    
    
    6.72
    %Total
    
    
    714,207
    
    
    
    102,217
    
    
    
    14.31
    %
    
    
    694,938
    
    
    
    93,427
    
    
    
    13.44
    %
    
    
    767, 970
    
    
    
    51,575
    
    
    
    6.72
    %
  38




---



##### Table of Contents



Years Ended December 31,2005
    
    
    2006
    
    
    2007Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    AverageAverage
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    NominalBalance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate(in thousands of pesos, except percentages)Deposits with the Central BankPesos
    
    
    513,602
    
    
    
    3,318
    
    
    
    0.65
    %
    
    
    733,687
    
    
    
    2,825
    
    
    
    0.39
    %
    
    
    1,377,853
    
    
    
    10,908
    
    
    
    0.79
    %Dollars
    
    
    300,533
    
    
    
    4,523
    
    
    
    1.50
    %
    
    
    441,288
    
    
    
    7,561
    
    
    
    1.71
    %
    
    
    568,821
    
    
    
    7,474
    
    
    
    1.31
    %Total
    
    
    814,135
    
    
    
    7,841
    
    
    
    0.96
    %
    
    
    1,174,975
    
    
    
    10,386
    
    
    
    0.88
    %
    
    
    1,946,674
    
    
    
    18,382
    
    
    
    0.94
    %Other assetsPesos
    
    
    975,249
    
    
    
    80,724
    
    
    
    8.28
    %
    
    
    1,055,424
    
    
    
    95,937
    
    
    
    9.09
    %
    
    
    1,289,250
    
    
    
    138,041
    
    
    
    10.71
    %Dollars
    
    
    705,907
    
    
    
    13,622
    
    
    
    1.93
    %
    
    
    478,870
    
    
    
    20,592
    
    
    
    4.30
    %
    
    
    417,109
    
    
    
    23,663
    
    
    
    5.67
    %Total
    
    
    1,681,156
    
    
    
    94,346
    
    
    
    5.61
    %
    
    
    1,534,294
    
    
    
    116,529
    
    
    
    7.59
    %
    
    
    1,706,359
    
    
    
    161,704
    
    
    
    9.48
    %Total interest-earning assetsPesos
    
    
    6,747,244
    
    
    
    676,236
    
    
    
    10.02
    %
    
    
    8,710,789
    
    
    
    1,052,553
    
    
    
    12.08
    %
    
    
    13,521,740
    
    
    
    1,663,646
    
    
    
    12.30
    %Dollars
    
    
    1,617,786
    
    
    
    28,831
    
    
    
    1.78
    %
    
    
    1,866,633
    
    
    
    57,386
    
    
    
    3.07
    %
    
    
    2,395,839
    
    
    
    125,550
    
    
    
    5.24
    %Total
    
    
    8,365,030
    
    
    
    705,067
    
    
    
    8.43
    %
    
    
    10,577,422
    
    
    
    1,109,939
    
    
    
    10.49
    %
    
    
    15,917,579
    
    
    
    1,789,196
    
    
    
    11.24
    %Non interest-earning assetsCash and due from banksPesos
    
    
    234,109
    
    
    
    
    
    
    
    
    
    
    
    325,154
    
    
    
    
    
    
    
    
    
    
    
  404,796Dollars
    
    
    295,552
    
    
    
    
    
    
    
    
    
    
    
    353,051
    
    
    
    
    
    
    
    
    
    

    
  455,163Euros
    
    
    6,294
    
    
    
    
    
    
    
    
    
    
    
    8,955
    
    
    
    
    
    
    
    
    
    
    
14,590Other
    
    
    1,238
    
    
    
    
    
    
    
    
    
    
    
    1,481
    
    
    
    
    
    
    
    
    
    
    
  2,002Total
    
    
    537,193
    
    
    
    
    
    
    
    
    
    
    
    688,641
    
    
    
    
    
    
    
    
    
    
    
  876,551Investments in other companiesPesos
    
    
    58
    
    
    
    
    
    
    
    
    
    
    
    9,176
    
    
    
    
    
    
    
    
    
    
    
9,215Dollars
    
    
    636
    
    
    
    
    
    
    
    
    
    
    
    1,025
    
    
    
    
    
    
    
    
    
    
    
1,552Total
    
    
    694
    
    
    
    
    
    
    
    
    
    
    
    10,201
    
    
    
    
    
    
    
    
    
    
    
 10,767Property and equipment and miscellaneous and intangible
assets and items pending of allocationPesos
    
    
    435,210
    
    
    
    
    
    
    
    
    
    
    
    578,243
    
    
    
    
    
    
    
    
    
    
    
   771,073Total
    
    
    435,210
    
    
    
    
    
    
    
    
    
    
    
    578,243
    
    
    
    
    
    
    
    
    
    
    
  771,073Allowance for loan lossesPesos
    
    
    (196,888
    )
    
    
    
    
    
    
    
    
    
    
    (287,893
    )
    
    
    
    
    
    
    
    
    



    (174,992
    )Dollars
    
    
    (43,587
    )
    
    
    
    
    
    
    
    
    
    
    (44,945
    )
    
    
    
    
    
    
    
    
    

    (27,271
    )Total
    
    
    (240,475
    )
    
    
    
    
    
    
    
    
    
    
    (332,838
    )
    
    
    
    
    
    
    
    
    

    (202,263
    )Other assetsPesos
    
    
    220,946
    
    
    
    
    
    
    
    
    
    
    
    166,439
    
    
    
    
    
    
    
    
    
    
    
298,889Dollars
    
    
    38,727
    
    
    
    
    
    
    
    
    
    
    
    103,471
    
    
    
    
    
    
    
    
    
    
    
41,280Euros
    
    
    76
    
    
    
    
    
    
    
    
    
    
    
    43
    
    
    
    
    
    
    
    
    
    
    
40Total
    
    
    259,749
    
    
    
    
    
    
    
    
    
    
    
    269,953
    
    
    
    
    
    
    
    
    
    
    
 340,209Total non interest-earning assetsPesos
    
    
    693,435
    
    
    
    
    
    
    
    
    
    
    
    791,119
    
    
    
    
    
    
    
    
    
    
    
1,308,981Dollars
    
    
    291,328
    
    
    
    
    
    
    
    
    
    
    
    412,602
    
    
    
    
    
    
    
    
    
    
    
 470,724Euros
    
    
    6,370
    
    
    
    
    
    
    
    
    
    
    
    8,998
    
    
    
    
    
    
    
    
    
    
    
14,630Other
    
    
    1,238
    
    
    
    
    
    
    
    
    
    
    
    1,481
    
    
    
    
    
    
    
    
    
    
    
 2,002Total
    
    
    992,371
    
    
    
    
    
    
    
    
    
    
    
    1,214,200
    
    
    
    
    
    
    
    
    
    
    

1,796,337TOTAL ASSETSPesos
    
    
    7,440,679
    
    
    
    
    
    
    
    
    
    
    
    9,501,908
    
    
    
    
    
    
    
    
    
    
    
14,830,721Dollars
    
    
    1,909,114
    
    
    
    
    
    
    
    
    
    
    
    2,279,235
    
    
    
    
    
    
    
    
    
    
    
  2,866,563Euros
    
    
    6,370
    
    
    
    
    
    
    
    
    
    
    
    8,998
    
    
    
    
    
    
    
    
    
    
    
  14,630Other
    
    
    1,238
    
    
    
    
    
    
    
    
    
    
    
    1,481
    
    
    
    
    
    
    
    
    
    
    
 2,002Total
    
    
    9,357,401
    
    
    
    
    
    
    
    
    
    
    
    11,791,622
    
    
    
    
    
    
    
    
    
    
    
17,713,916
  39




---



##### Table of Contents



Years Ended December 31,2005
    
    
    2006
    
    
    2007Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    AverageAverage
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    NominalBalance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate(in thousands of pesos, except percentages)LIABILITIESInterest-bearing liabilitiesSavings accountsPesos
    
    
    635,072
    
    
    
    4,144
    
    
    
    0.65
    %
    
    
    950,338
    
    
    
    7,126
    
    
    
    0.75
    %
    
    
    1,444,795
    
    
    
    10,757
    
    
    
    0.74
    %Dollars
    
    
    85,130
    
    
    
    159
    
    
    
    0.19
    %
    
    
    130,478
    
    
    
    316
    
    
    
    0.24
    %
    
    
    174,476
    
    
    
    698
    
    
    
    0.40
    %Total
    
    
    720,202
    
    
    
    4,303
    
    
    
    0.60
    %
    
    
    1,080,816
    
    
    
    7,442
    
    
    
    0.69
    %
    
    
    1,619,271
    
    
    
    11,455
    
    
    
    0.71
    %Certificates of depositsPesos
    
    
    2,652,277
    
    
    
    198,917
    
    
    
    7.50
    %
    
    
    3,056,186
    
    
    
    252,927
    
    
    
    8.28
    %
    
    
    4,589,993
    
    
    
    421,823
    
    
    
    9.19
    %Dollars
    
    
    828,236
    
    
    
    14,685
    
    
    
    1.77
    %
    
    
    1,190,185
    
    
    
    31,167
    
    
    
    2.62
    %
    
    
    1,437,841
    
    
    
    47,923
    
    
    
    3.33
    %Total
    
    
    3,480,513
    
    
    
    213,602
    
    
    
    6.14
    %
    
    
    4,246,371
    
    
    
    284,094
    
    
    
    6.69
    %
    
    
    6,027,834
    
    
    
    469,746
    
    
    
    7.79
    %Borrowing from the Central BankPesos
    
    
    491,462
    
    
    
    16,588
    
    
    
    3.38
    %
    
    
    305,108
    
    
    
    12,423
    
    
    
    4.07
    %
    
    
    370,182
    
    
    
    37,344
    
    
    
    10.09
    %Dollars
    
    
    14,772
    
    
    
    294
    
    
    
    1.99
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    506,234
    
    
    
    16,882
    
    
    
    3.33
    %
    
    
    305,108
    
    
    
    12,423
    
    
    
    4.07
    %
    
    
    370,182
    
    
    
    37,344
    
    
    
    10.09
    %Borrowings from other financial institutionsPesos
    
    
    53,566
    
    
    
    5,831
    
    
    
    10.89
    %
    
    
    99,907
    
    
    
    8,310
    
    
    
    8.32
    %
    
    
    223,845
    
    
    
    20,394
    
    
    
    9.11
    %Dollars
    
    
    189,293
    
    
    
    11,558
    
    
    
    6.11
    %
    
    
    148,962
    
    
    
    19,963
    
    
    
    13.40
    %
    
    
    202,259
    
    
    
    13,967
    
    
    
    6.91
    %Total
    
    
    242,859
    
    
    
    17,389
    
    
    
    7.16
    %
    
    
    248,869
    
    
    
    28,273
    
    
    
    11.36
    %
    
    
    426,104
    
    
    
    34,361
    
    
    
    8.06
    %Corporate BondsPesos
    
    
    15,920
    
    
    
    1,962
    
    
    
    12.32
    %
    
    
    6,338
    
    
    
    1,015
    
    
    
    16.01
    %
    
    
    178,101
    
    
    
    19,082
    
    
    
    10.71
    %Dollars
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    38,863
    
    
    
    1,612
    
    
    
    4.15
    %
    
    
    918,054
    
    
    
    86,444
    
    
    
    9.42
    %Total
    
    
    15,920
    
    
    
    1,962
    
    
    
    12.32
    %
    
    
    45,201
    
    
    
    2,627
    
    
    
    5.81
    %
    
    
    1,096,155
    
    
    
    105,526
    
    
    
    9.63
    %Other liabilitiesPesos
    
    
    495,792
    
    
    
    4,648
    
    
    
    0.94
    %
    
    
    862,543
    
    
    
    22,053
    
    
    
    2.56
    %
    
    
    1,454,997
    
    
    
    37,652
    
    
    
    2.59
    %Dollars
    
    
    376,472
    
    
    
    8,680
    
    
    
    2.31
    %
    
    
    398,334
    
    
    
    1,345
    
    
    
    0.34
    %
    
    
    421,766
    
    
    
    4,842
    
    
    
    1.15
    %Total
    
    
    872,264
    
    
    
    13,328
    
    
    
    1.53
    %
    
    
    1,260,877
    
    
    
    23,398
    
    
    
    1.86
    %
    
    
    1,876,763
    
    
    
    42,494
    
    
    
    2.26
    %Total Interest-bearing liabilitiesPesos
    
    
    4,344,089
    
    
    
    232,090
    
    
    
    5.34
    %
    
    
    5,280,420
    
    
    
    303,854
    
    
    
    5.75
    %
    
    
    8,261,913
    
    
    
    547,052
    
    
    
    6.62
    %Dollars
    
    
    1,493,903
    
    
    
    35,376
    
    
    
    2.37
    %
    
    
    1,906,822
    
    
    
    54,403
    
    
    
    2.85
    %
    
    
    3,154,396
    
    
    
    153,874
    
    
    
    4.88
    %Total
    
    
    5,837,992
    
    
    
    267,466
    
    
    
    4.58
    %
    
    
    7,187,242
    
    
    
    358,257
    
    
    
    4.98
    %
    
    
    11,416,309
    
    
    
    700,926
    
    
    
    6.14
    %
  40




---



##### Table of Contents



Years Ended December 31,2005
    
    
    2006
    
    
    2007Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    AverageAverage
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    Nominal
    
    
    Average
    
    
    Earned/
    
    
    NominalBalance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate
    
    
    Balance
    
    
    (Paid)
    
    
    Rate(in thousands of pesos, except percentages)Non-interest bearing liabilities and Stockholders equityDemand depositsPesos
    
    
    1,691,837
    
    
    
    
    
    
    
    
    
    
    
    2,014,468
    
    
    
    
    
    
    
    
    
    
    
    3,069,049
    
    
    
    
    
    
    
    Dollars
    
    
    45,955
    
    
    
    
    
    
    
    
    
    
    
    3,502
    
    
    
    
    
    
    
    
    
    
    
    6,680
    
    
    
    
    
    
    
    Total
    
    
    1,737,792
    
    
    
    
    
    
    
    
    
    
    
    2,017,970
    
    
    
    
    
    
    
    
    
    
    
    3,075,729
    
    
    
    
    
    
    
    Other liabilitiesPesos
    
    
    341,890
    
    
    
    
    
    
    
    
    
    
    
    493,194
    
    
    
    
    
    
    
    
    
    
    
    539,333
    
    
    
    
    
    
    
    Dollars
    
    
    102,240
    
    
    
    
    
    
    
    
    
    
    
    140,127
    
    
    
    
    
    
    
    
    
    
    
    185,904
    
    
    
    
    
    
    
    Euros
    
    
    3,830
    
    
    
    
    
    
    
    
    
    
    
    2,623
    
    
    
    
    
    
    
    
    
    
    
    6,045Other
    
    
    439
    
    
    
    
    
    
    
    
    
    
    
    124
    
    
    
    
    
    
    
    
    
    
    
    130Total
    
    
    448,399
    
    
    
    
    
    
    
    
    
    
    
    636,068
    
    
    
    
    
    
    
    
    
    
    
    731,412Minority InterestPesos
    
    
    55
    
    
    
    
    
    
    
    
    
    
    
    35,097
    
    
    
    
    
    
    
    
    
    
    
    34,112Total
    
    
    55
    
    
    
    
    
    
    
    
    
    
    
    35,097
    
    
    
    
    
    
    
    
    
    
    
    34,112Stockholders equityPesos
    
    
    1,333,163
    
    
    
    
    
    
    
    
    
    
    
    1,915,245
    
    
    
    
    
    
    
    
    
    
    
    2,456,353Total
    
    
    1,333,163
    
    
    
    
    
    
    
    
    
    
    
    1,915,245
    
    
    
    
    
    
    
    
    
    
    
    2,456,353Total non-interest bearing liabilities and stockholders
equityPesos
    
    
    3,366,945
    
    
    
    
    
    
    
    
    
    
    
    4,458,004
    
    
    
    
    
    
    
    
    
    
    
    6,098,847Dollars
    
    
    148,195
    
    
    
    
    
    
    
    
    
    
    
    143,629
    
    
    
    
    
    
    
    
    
    
    
    192,584Euros
    
    
    3,830
    
    
    
    
    
    
    
    
    
    
    
    2,623
    
    
    
    
    
    
    
    
    
    
    
    6,045Other
    
    
    439
    
    
    
    
    
    
    
    
    
    
    
    124
    
    
    
    
    
    
    
    
    
    
    
    130Total
    
    
    3,519,409
    
    
    
    
    
    
    
    
    
    
    
    4,604,380
    
    
    
    
    
    
    
    
    
    
    
    6,297,606TOTAL LIABILITIES AND STOCKHOLDERS EQUITYPesos
    
    
    7,711,034
    
    
    
    
    
    
    
    
    
    
    
    9,738,424
    
    
    
    
    
    
    
    
    
    
    
    14,360,760Dollars
    
    
    1,642,098
    
    
    
    
    
    
    
    
    
    
    
    2,050,451
    
    
    
    
    
    
    
    
    
    
    
    3,346,980Euros
    
    
    3,830
    
    
    
    
    
    
    
    
    
    
    
    2,623
    
    
    
    
    
    
    
    
    
    
    
    6,045Other
    
    
    439
    
    
    
    
    
    
    
    
    
    
    
    124
    
    
    
    
    
    
    
    
    
    
    
    130Total
    
    
    9,357,401
    
    
    
    
    
    
    
    
    
    
    
    11,791,622
    
    
    
    
    
    
    
    
    
    
    
    17,713,915
 (1)
    
    Includes instruments issued by the Central Bank.  41




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##### Table of Contents



Changes in interest income and interest expense; volume and rate analysis
  December 2005/December 2004
    
    
    December 2006/December 2005
    
    
    December 2007/December 2006Increase (Decrease) Due to
    
    
    Increase (Decrease) Due to
    
    
    Increase (Decrease) Due toChanges in
    
    
    Changes in
    
    
    Changes inNet
    
    
    
    
    
    
    
    
    
    
    Net
    
    
    
    
    
    
    
    
    
    
    NetVolume
    
    
    Rate
    
    
    Change
    
    
    Volume
    
    
    Rate
    
    
    Change
    
    
    Volume
    
    
    Rate
    
    
    Change(in thousand of pesos)ASSETSInterest-earning assetsGovernment securitiesPesos
    
    
    71,850
    
    
    
    (60,559
    )
    
    
    11,291
    
    
    
    (14,677
    )
    
    
    94,260
    
    
    
    79,583
    
    
    
    160,606
    
    
    
    (23,250
    )
    
    
    137,356Dollars
    
    
    1,447
    
    
    
    (8,817
    )
    
    
    (7,370
    )
    
    
    (3,784
    )
    
    
    5,016
    
    
    
    1,232
    
    
    
    (4,293
    )
    
    
    29,862
    
    
    
    25,569Total
    
    
    73,297
    
    
    
    (69,376
    )
    
    
    3,921
    
    
    
    (18,461
    )
    
    
    99,276
    
    
    
    80,815
    
    
    
    156,313
    
    
    
    6,612
    
    
    
    162,925LoansPrivate sectorPesos
    
    
    135,531
    
    
    
    34,443
    
    
    
    169,974
    
    
    
    274,311
    
    
    
    16,493
    
    
    
    290,804
    
    
    
    399,688
    
    
    
    65,714
    
    
    
    465,402Dollars
    
    
    11,272
    
    
    
    (621
    )
    
    
    10,651
    
    
    
    13,560
    
    
    
    3,755
    
    
    
    17,315
    
    
    
    32,921
    
    
    
    6,690
    
    
    
    39,611Total
    
    
    146,803
    
    
    
    33,822
    
    
    
    180,625
    
    
    
    287,871
    
    
    
    20,248
    
    
    
    308,119
    
    
    
    432,609
    
    
    
    72,404
    
    
    
    505,013Public sectorPesos
    
    
    47,662
    
    
    
    19,842
    
    
    
    67,504
    
    
    
    (2,591
    )
    
    
    (6,199
    )
    
    
    (8,790
    )
    
    
    4,905
    
    
    
    (46,757
    )
    
    
    (41,852
    )Dollars
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    47,662
    
    
    
    19,842
    
    
    
    67,504
    
    
    
    (2,591
    )
    
    
    (6,199
    )
    
    
    (8,790
    )
    
    
    4,905
    
    
    
    (46,757
    )
    
    
    (41,852
    )Deposits with the Central BankPesos
    
    
    2,810
    
    
    
    (3,203
    )
    
    
    (393
    )
    
    
    847
    
    
    
    (1,340
    )
    
    
    (493
    )
    
    
    5,100
    
    
    
    2,983
    
    
    
    8,083Dollars
    
    
    4,485
    
    
    
    13
    
    
    
    4,498
    
    
    
    2,412
    
    
    
    626
    
    
    
    3,038
    
    
    
    1,676
    
    
    
    (1,763
    )
    
    
    (87
    )Total
    
    
    7,295
    
    
    
    (3,190
    )
    
    
    4,105
    
    
    
    3,259
    
    
    
    (714
    )
    
    
    2,545
    
    
    
    6,776
    
    
    
    1,220
    
    
    
    7,996Other assetsPesos
    
    
    46,326
    
    
    
    9,336
    
    
    
    55,662
    
    
    
    7,288
    
    
    
    7,925
    
    
    
    15,213
    
    
    
    25,036
    
    
    
    17,068
    
    
    
    42,104Dollars
    
    
    5,505
    
    
    
    6,633
    
    
    
    12,138
    
    
    
    (9,763
    )
    
    
    16,760
    
    
    
    6,997
    
    
    
    (3,504
    )
    
    
    6,575
    
    
    
    3,071Total
    
    
    51,831
    
    
    
    15,969
    
    
    
    67,800
    
    
    
    (2,475
    )
    
    
    24,685
    
    
    
    22,210
    
    
    
    21,532
    
    
    
    23,643
    
    
    
    45,175Total interest-earning assetsPesos
    
    
    304,179
    
    
    
    (141
    )
    
    
    304,038
    
    
    
    265,178
    
    
    
    111,139
    
    
    
    376,317
    
    
    
    595,335
    
    
    
    15,758
    
    
    
    611,093Dollars
    
    
    22,709
    
    
    
    (2,792
    )
    
    
    19,917
    
    
    
    2,425
    
    
    
    26,157
    
    
    
    28,582
    
    
    
    26,800
    
    
    
    41,364
    
    
    
    68,164Total
    
    
    326,888
    
    
    
    (2,933
    )
    
    
    323,955
    
    
    
    267,603
    
    
    
    137,296
    
    
    
    404,899
    
    
    
    622,135
    
    
    
    57,122
    
    
    
    679,257
  42




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##### Table of Contents



December 2005/December 2004
    
    
    December 2006/December 2005
    
    
    December 2007/December 2006Increase (Decrease) Due to
    
    
    Increase (Decrease) Due to
    
    
    Increase (Decrease) Due toChanges in
    
    
    Changes in
    
    
    Changes inNet
    
    
    
    
    
    
    
    
    
    
    Net
    
    
    
    
    
    
    
    
    
    
    NetVolume
    
    
    Rate
    
    
    Change
    
    
    Volume
    
    
    Rate
    
    
    Change
    
    
    Volume
    
    
    Rate
    
    
    Change(in thousand of pesos)LIABILITIESInterest-bearing liabilitiesSavings accountsPesos
    
    
    2,395
    
    
    
    (1,408
    )
    
    
    987
    
    
    
    2,364
    
    
    
    618
    
    
    
    2,982
    
    
    
    3,681
    
    
    
    (50
    )
    
    
    3,631Dollars
    
    
    102
    
    
    
    53
    
    
    
    155
    
    
    
    110
    
    
    
    47
    
    
    
    157
    
    
    
    176
    
    
    
    206
    
    
    
    382Total
    
    
    2,497
    
    
    
    (1,355
    )
    
    
    1,142
    
    
    
    2,474
    
    
    
    665
    
    
    
    3,139
    
    
    
    3,857
    
    
    
    156
    
    
    
    4,013Certificates of depositsPesos
    
    
    96,945
    
    
    
    46,971
    
    
    
    143,916
    
    
    
    33,427
    
    
    
    20,583
    
    
    
    54,010
    
    
    
    140,958
    
    
    
    27,938
    
    
    
    168,896Dollars
    
    
    4,593
    
    
    
    1,943
    
    
    
    6,536
    
    
    
    9,478
    
    
    
    7,004
    
    
    
    16,482
    
    
    
    8,254
    
    
    
    8,502
    
    
    
    16,756Total
    
    
    101,538
    
    
    
    48,914
    
    
    
    150,452
    
    
    
    42,905
    
    
    
    27,587
    
    
    
    70,492
    
    
    
    149,212
    
    
    
    36,440
    
    
    
    185,652Borrowings from the Central BankPesos
    
    
    16,256
    
    
    
    (565
    )
    
    
    15,691
    
    
    
    (7,587
    )
    
    
    3,422
    
    
    
    (4,165
    )
    
    
    6,565
    
    
    
    18,356
    
    
    
    24,921Dollars
    
    
    294
    
    
    
    
    
    
    
    294
    
    
    
    
    
    
    
    (294
    )
    
    
    (294
    )
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    16,550
    
    
    
    (565
    )
    
    
    15,985
    
    
    
    (7,587
    )
    
    
    3,128
    
    
    
    (4,459
    )
    
    
    6,565
    
    
    
    18,356
    
    
    
    24,921Borrowings from other financial
institutionsPesos
    
    
    1,227
    
    
    
    2,019
    
    
    
    3,246
    
    
    
    3,855
    
    
    
    (1,376
    )
    
    
    2,479
    
    
    
    11,292
    
    
    
    792
    
    
    
    12,084Dollars
    
    
    7,822
    
    
    
    1,797
    
    
    
    9,619
    
    
    
    (5,405
    )
    
    
    13,810
    
    
    
    8,405
    
    
    
    3,680
    
    
    
    (9,676
    )
    
    
    (5,996
    )Total
    
    
    9,049
    
    
    
    3,816
    
    
    
    12,865
    
    
    
    (1,550
    )
    
    
    12,434
    
    
    
    10,884
    
    
    
    14,972
    
    
    
    (8,884
    )
    
    
    6,088Corporate BondsPesos
    
    
    (24,541
    )
    
    
    12,193
    
    
    
    (12,348
    )
    
    
    (1,535
    )
    
    
    588
    
    
    
    (947
    )
    
    
    18,403
    
    
    
    (336
    )
    
    
    18,067Dollars
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,612
    
    
    
    
    
    
    
    1,612
    
    
    
    82,785
    
    
    
    2,047
    
    
    
    84,832Total
    
    
    (24,541
    )
    
    
    12,193
    
    
    
    (12,348
    )
    
    
    77
    
    
    
    588
    
    
    
    665
    
    
    
    101,188
    
    
    
    1,711
    
    
    
    102,899Other liabilitiesPesos
    
    
    1,090
    
    
    
    (1,719
    )
    
    
    (629
    )
    
    
    9,373
    
    
    
    8,032
    
    
    
    17,405
    
    
    
    15,331
    
    
    
    268
    
    
    
    15,599Dollars
    
    
    4,634
    
    
    
    (6,486
    )
    
    
    (1,852
    )
    
    
    74
    
    
    
    (7,409
    )
    
    
    (7,335
    )
    
    
    269
    
    
    
    3,228
    
    
    
    3,497EuroTotal
    
    
    5,724
    
    
    
    (8,205
    )
    
    
    (2,481
    )
    
    
    9,447
    
    
    
    623
    
    
    
    10,070
    
    
    
    15,600
    
    
    
    3,496
    
    
    
    19,096Total interest-bearing liabilitiesPesos
    
    
    93,372
    
    
    
    57,491
    
    
    
    150,863
    
    
    
    39,898
    
    
    
    31,866
    
    
    
    71,764
    
    
    
    196,230
    
    
    
    46,968
    
    
    
    243,198Dollars
    
    
    17,445
    
    
    
    (2,693
    )
    
    
    14,752
    
    
    
    5,869
    
    
    
    13,158
    
    
    
    19,027
    
    
    
    95,164
    
    
    
    4,307
    
    
    
    99,471EuroTotal
    
    
    110,817
    
    
    
    54,798
    
    
    
    165,615
    
    
    
    45,767
    
    
    
    45,024
    
    
    
    90,791
    
    
    
    291,394
    
    
    
    51,275
    
    
    
    342,669
 Interest-earning assets: net interest margin and spread
  Year Ended December 31,2005
    
    
    2006
    
    
    2007(in thousands of pesos, except percentages)Average interest-earning assetsPesos
    
    
    6,747,244
    
    
    
    8,710,789
    
    
    
    13,521,740Dollars
    
    
    1,617,786
    
    
    
    1,866,633
    
    
    
    2,395,839Total
    
    
    8,365,030
    
    
    
    10,577,422
    
    
    
    15,917,579Net interest income (1)Pesos
    
    
    444,146
    
    
    
    748,699
    
    
    
    1,116,594Dollars
    
    
    (6,545
    )
    
    
    2,983
    
    
    
    (26,403
    )Total
    
    
    437,601
    
    
    
    751,682
    
    
    
    1,090,191Net interest margin (2)Pesos
    
    
    6.58
    %
    
    
    8.60
    %
    
    
    8.26
    %Dollars
    
    
    (0.40
    )%
    
    
    0.16
    %
    
    
    (1.10
    )%Weighted average rate
    
    
    5.23
    %
    
    
    7.11
    %
    
    
    6.85
    %Yield spread nominal basis (3)Pesos
    
    
    4.68
    %
    
    
    6.33
    %
    
    
    5.68
    %Dollars
    
    
    (0.59
    )%
    
    
    0.22
    %
    
    
    0.42
    %Weighted average rate
    
    
    3.85
    %
    
    
    5.51
    %
    
    
    5.12
    %
 (1)
    
    Defined as interest earned less interest paid. Trading results from our portfolio of government
securities are included in interest.(2)
    
    Net interest income stated as a percentage of average interest-earning assets.(3)
    
    Defined as the difference between the average nominal rate on interest-earning assets and the
average nominal rate on interest-bearing liabilities.  43




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##### Table of Contents



Investment portfolio: government and private securities
  As of December 31,2005(1)
    
    
    2006(1)
    
    
    2007(in thousands of pesos)Government SecuritiesIn Pesos:Holdings in Investment AccountsFederal
Government Bonds, maturity 2007 
Compensation (BODEN)
    
    
    10,705
    
    
    
    
    
    
    
    Subtotal Holdings in Investment Accounts
    
    
    10,705
    
    
    
    
    
    
    
    Holdings for Trading or IntermediationSocial Security Consolidation Bonds payables in Pesos
    
    
    9,110
    
    
    
    4,151
    
    
    
    70,670Secured Bonds Decree 1,579/02
    
    
    22,391
    
    
    
    36,414
    
    
    
    38,299Discount Bonds
    
    
    13,378
    
    
    
    4,143
    
    
    
    18,746Federal Government Bonds (maturity 2007, 2008 and
2014) (BODEN)
    
    
    644
    
    
    
    104,502
    
    
    
    13,840Consolidation Bonds
    
    
    2,906
    
    
    
    1,971
    
    
    
    10,236Province of Tucumán Bonds
    
    
    
    
    
    
    1,905
    
    
    
    2,828Par Bonds
    
    
    
    
    
    
    439
    
    
    
    1,590GDP-Related Securities (maturity 2035)
    
    
    
    
    
    
    2,337
    
    
    
    1,109Quasi-Par Securities (maturity 2045)
    
    
    
    
    
    
    2,920
    
    
    
    Other
    
    
    2,069
    
    
    
    298
    
    
    
    197Subtotal Holdings for Trading or Intermediation
    
    
    50,498
    
    
    
    159,080
    
    
    
    157,515Unlisted Government SecuritiesSecured Bonds Decree 1,579/02
    
    
    197,771
    
    
    
    
    
    
    
    Federal Government Bonds (maturity 2013  BODEN)
    
    
    
    
    
    
    13,254
    
    
    
    11,987Other
    
    
    587
    
    
    
    18
    
    
    
    38Subtotal Unlisted Government Securities
    
    
    198,358
    
    
    
    13,272
    
    
    
    12,025Instruments Issued by B.C.R.A.Listed Central Bank External bills and notes (Lebacs/Nobacs)
    
    
    2,165,609
    
    
    
    2,787,019
    
    
    
    3,478,246Unlisted Central Bank External bills and notes (Lebacs/Nobacs)
    
    
    297,493
    
    
    
    
    
    
    
    Subtotal Instruments Issued by B.C.R.A.
    
    
    2,463,102
    
    
    
    2,787,019
    
    
    
    3,478,246Total Government Securities in pesos
    
    
    2,722,663
    
    
    
    2,959,371
    
    
    
    3,647,786In Foreign Currency:Holdings in Investment AccountsFederal Government Bonds maturity 2012  Compensation (BODEN)
    
    
    94,711
    
    
    
    
    
    
    
    Subtotal Holdings in Investment Accounts
    
    
    94,711
    
    
    
    
    
    
    
    Holding for Trading or IntermediationFederal Government Bonds (maturity 2012 and 2013) (BODEN)
    
    
    109,658
    
    
    
    111,263
    
    
    
    145,269Argentine Government Bonds (maturity 2011  Bonar X)
    
    
    
    
    
    
    
    
    
    
    45,954Province of Mendoza (maturity 2018)
    
    
    
    
    
    
    
    
    
    
    7,533Argentine Government Bonds (maturity 2011  Bonar V)
    
    
    
    
    
    
    2,128
    
    
    
    1,462Par Bonds
    
    
    
    
    
    
    280
    
    
    
    368Treasury Bills (maturity 2007 and 2008)
    
    
    4,543
    
    
    
    31,276
    
    
    
    Other
    
    
    87
    
    
    
    38
    
    
    
    312Subtotal Holding for Trading or Intermediation
    
    
    114,288
    
    
    
    144,985
    
    
    
    200,898
  44




---



##### Table of Contents



As of December 31,2005(1)
    
    
    2006(1)
    
    
    2007(in thousands of pesos)Unlisted Government SecuritiesProvince of Tucuman Bonds (maturity 2015)
    
    
    
    
    
    
    169
    
    
    
    8,112Subtotal Unlisted Government Securities
    
    
    
    
    
    
    169
    
    
    
    8,112Total Government Securities in foreign currency
    
    
    208,999
    
    
    
    145,154
    
    
    
    209,010Total Government Securities
    
    
    2,931,662
    
    
    
    3,104,525
    
    
    
    3,856,796Investments in Listed Private SecuritiesIn Pesos:Mutual Funds
    
    
    547
    
    
    
    11,437
    
    
    
    19,424Commercial Paper
    
    
    
    
    
    
    
    
    
    
    Corporate Bonds
    
    
    7,532
    
    
    
    
    
    
    
    Shares
    
    
    6,093
    
    
    
    1,445
    
    
    
    2,971Certificates of Participation in Financial Trusts
    
    
    19,005
    
    
    
    
    
    
    
    Debt Securities in Financial Trusts
    
    
    3,448
    
    
    
    1,035
    
    
    
    In Foreign Currency:Mutual Funds
    
    
    4,815
    
    
    
    17,925
    
    
    
    11,883Commercial Paper
    
    
    
    
    
    
    
    
    
    
    30,402Corporate Bonds
    
    
    16,484
    
    
    
    80,482
    
    
    
    23,595Shares
    
    
    1,978
    
    
    
    6,135
    
    
    
    5,681Total Private Securities
    
    
    59,902
    
    
    
    118,459
    
    
    
    93,956Total Government and Private Securities
    
    
    2,991,564
    
    
    
    3,222,984
    
    
    
    3,950,752Investments in Unlisted Private SecuritiesIn Pesos:Certificates of Participation in Financial Trusts (2)
    
    
    147,993
    
    
    
    413,612
    
    
    
    438,331Debt Securities in Financial Trusts
    
    
    124,700
    
    
    
    90,133
    
    
    
    77,030Corporate Bonds (3)
    
    
    536
    
    
    
    534
    
    
    
    190In
Foreign Currency:Certificates of Participation in Financial Trusts (2)
    
    
    45,069
    
    
    
    38,100
    
    
    
    33,611Corporate Bonds (3)
    
    
    391
    
    
    
    12,127
    
    
    
    44,067Total Investments in Unlisted Private Securities
    
    
    318,689
    
    
    
    554,406
    
    
    
    593,229Total
    
    
    3,310,253
    
    
    
    3,777,390
    
    
    
    4,543,981
 (1)
    
    See note 4.2. to our audited consolidated financial statements for the year ended
December 31, 2007.(2)
    
    The bank booked allowances for impairment in value amounting to 203,797, 169,097 and
19,749 as of December 31, 2007, 2006 and 2005 respectively.(3)
    
    The bank booked allowances for impairment in value amounting to 321 as of December 31,
2007.  45




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##### Table of Contents



Remaining maturity of government and private securities
  MaturingAfter
    
    
    After1 year
    
    
    5 yearsWithin
    
    
    but within
    
    
    but within
    
    
    After 10
    
    
    Without1 year
    
    
    5 years
    
    
    10 years
    
    
    years
    
    
    due date
    
    
    TotalBook value (in thousands of pesos)In Pesos:Holding for Trading or
IntermediationConsolidation Bonds of Social
Security payables in Pesos
    
    
    28,299
    
    
    
    38,808
    
    
    
    3,563
    
    
    
    
    
    
    
    
    
    
    
    70,670Secured Bonds Decree 1,579/02
    
    
    2,127
    
    
    
    11,525
    
    
    
    23,707
    
    
    
    940
    
    
    
    
    
    
    
    38,299Discount Bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,746
    
    
    
    
    
    
    
    18,746Federal Government Bonds (maturity
2008 and 2014)
    
    
    1,138
    
    
    
    7,489
    
    
    
    5,213
    
    
    
    
    
    
    
    
    
    
    
    13,840Consolidation Bonds
    
    
    1,786
    
    
    
    4,664
    
    
    
    2,105
    
    
    
    1,681
    
    
    
    
    
    
    
    10,236Province of Tucumán Bonds
    
    
    158
    
    
    
    851
    
    
    
    1,750
    
    
    
    69
    
    
    
    
    
    
    
    2,828Par Bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,590
    
    
    
    
    
    
    
    1,590GDP-Related Securities (maturity
2035)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,109
    
    
    
    
    
    
    
    1,109Other
    
    
    52
    
    
    
    83
    
    
    
    62
    
    
    
    
    
    
    
    
    
    
    
    197Unlisted Government SecuritiesFederal Government Bonds (maturity
2013 - BODEN)
    
    
    3,996
    
    
    
    7,991
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,987Other
    
    
    37
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    38Instruments Issued by B.C.R.A.Listed B.C.R.A. External Notes (1)
    
    
    2,919,442
    
    
    
    528,505
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,447,947Listed B.C.R.A. External Bills (1)
    
    
    21,694
    
    
    
    8,605
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,299Total Government securities in
pesos
    
    
    2,978,729
    
    
    
    608,522
    
    
    
    36,400
    
    
    
    24,135
    
    
    
    
    
    
    
    3,647,786In Foreign Currency:Holding for Trading or
IntermediationFederal Government Bonds in US$
(maturity 2012 and 2013)
    
    
    20,674
    
    
    
    82,697
    
    
    
    41,898
    
    
    
    
    
    
    
    
    
    
    
    145,269Argentine Government Bonds in US$
(maturity 2017 - Bonar X)
    
    
    
    
    
    
    
    
    
    
    45,954
    
    
    
    
    
    
    
    
    
    
    
    45,954Province of Mendoza Bonds in US$
Maturity 2018
    
    
    515
    
    
    
    2,361
    
    
    
    3,772
    
    
    
    885
    
    
    
    
    
    
    
    7,533Argentine Government Bonds in US$
(maturity 2011 - Bonar V)
    
    
    
    
    
    
    1,462
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,462Par Bonds in US$
    
 
    
    
    
 
    
    
    
    
    
    
    
    
    368
    
    
    
    
    
    
    
    368Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    312
    
    
    
    
    
    
    
    312Unlisted Government SecuritiesProvince of Tucumán Bonds in US$-
Maturity 2015
    
    
    2,704
    
    
    
    5,408
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,112Total Government securities in
foreign currency
    
    
    23,893
    
    
    
    91,928
    
    
    
    91,624
    
    
    
    1,565
    
    
    
    
    
    
    
    209,010Total Government securities
    
    
    3,002,622
    
    
    
    700,450
    
    
    
    128,024
    
    
    
    25,700
    
    
    
    
    
    
    
    3,856,796
  46




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##### Table of Contents



MaturingAfter
    
    
    After1 year
    
    
    5 yearsWithin
    
    
    but within
    
    
    but within
    
    
    After 10
    
    
    Without1 year
    
    
    5 years
    
    
    10 years
    
    
    years
    
    
    due date
    
    
    TotalBook value (in thousands of pesos)Private SecuritiesInvestments in listed private
securitiesIn Pesos:Mutual Funds
    
    
    19,424
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,424Shares
    
    
    2,971
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,971In foreign currency:Commercial Paper
    
    
    30,402
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,402Corporate bonds
    
    
    17,359
    
    
    
    6,236
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23,595Mutual Funds
    
    
    11,883
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,883Shares
    
    
    5,681
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,681Investments in unlisted private
securitiesIn Pesos:Certificates of Participation in
Financial Trusts(2)
    
    
    45,258
    
    
    
    142,304
    
    
    
    
    
    
    
    150,575
    
    
    
    100,194
    
    
    
    438,331Debt Securities in Financial Trusts
    
    
    68,088
    
    
    
    8,942
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    77,030Corporate Bonds(3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    190
    
    
    
    190In foreign currency:Certificates of Participation in
Financial Trusts(2)
    
    
    
    
    
    
    33,611
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    33,611Corporate Bonds(3)
    
    
    5,342
    
    
    
    38,457
    
    
    
    199
    
    
    
    69
    
    
    
    
    
    
    
    44,067Total Private securities
    
    
    206,408
    
    
    
    229,550
    
    
    
    199
    
    
    
    150,644
    
    
    
    100,384
    
    
    
    687,185
 (1)
    
    As of December 31, 2007, Instruments Issued by B.C.R.A. includes Ps. 119,468 to
fall due in 30 days, Ps. 446,075 to fall due in 60 days, Ps. 885,453 to fall due from 120
to 180 days, Ps. 1,490,140 to fall due from 181 to 365 days and Ps.537,110 more than
365 days.(2)
    
    The bank booked allowances for impairment in value amounting to 203,797, 169,097 and
19,749 as of December 31, 2007(3)
    
    The bank booked allowances for impairment in value amounting to 321 as of December 31,
2007. Loan portfolio
  As of December 31,2005(1)
    
    
    2006(1)
    
    
    2007(in thousands of pesos)To the non-financial government sector
    
    
    645,342
    
    
    
    774,273
    
    
    
    732,481To the financial sector (2)
    
    
    80,511
    
    
    
    436,930
    
    
    
    161,702To the non-financial private sector and foreign residentsOverdrafts (3)
    
    
    432,772
    
    
    
    1,103,270
    
    
    
    1,504,657Documents (4)
    
    
    433,748
    
    
    
    543,734
    
    
    
    1,081,675Mortgages loans
    
    
    298,060
    
    
    
    426,138
    
    
    
    619,781Pledged loans (5)
    
    
    230,321
    
    
    
    300,949
    
    
    
    347,989Consumer loans (6)
    
    
    718,261
    
    
    
    1,928,977
    
    
    
    3,929,579Other loans
    
    
    779,237
    
    
    
    1,131,315
    
    
    
    1,718,978Less: Unearned discount
    
    
    (10,411
    )
    
    
    (11,505
    )
    
    
    (20,836
    )Less: Unposted payment
    
    
    (6,050
    )
    
    
    (139
    )
    
    
    (69
    )Plus: Interest, adjustments and listed price differences
accrued pending collection
    
    
    72,861
    
    
    
    101,744
    
    
    
    153,902Less: Allowances
    
    
    (247,532
    )
    
    
    (208,581
    )
    
    
    (220,422
    )Total Loans
    
    
    3,427,120
    
    
    
    6,527,105
    
    
    
    10,009,417
 (1)
    
    See note 4.2. to our audited consolidated financial statements for the year ended December 31,
2007.(2)
    
    Includes loans to financial institutions.(3)
    
    Overdrafts include overdraft lines of credit resulting from checking accounts.(4)
    
    Includes the face values of drafts, promissory notes and other bills transferred to us by
endorsement for which the assignor is liable, whenever the latter is an Argentine resident within
the financial sector. The difference between the face value of the bill and the amount effectively
disbursed will be credited to Loans- Argentine residents-Financial Sector-Principals-(Unearned
discount).(5)
    
    Includes the principal amounts actually lent of automobile and other collateral loans granted,
for which the obligator is part of the non-financial private sector.(6)
    
    Consumer loans include credit card loans and other consumer loans. Overdrafts to individuals
are included under Overdrafts  47




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##### Table of Contents



Maturity composition of the loan portfolio
  MaturingAfterAmount as of
    
    
    
    
    
    
    1 Year butDecember 31,
    
    
    Within
    
    
    Within
    
    
    After2007
    
    
    1 Year
    
    
    5 Years
    
    
    5 Years(in thousands of pesos, except percentages)To the non-financial government sector
    
    
    732,481
    
    
    
    21,598
    
    
    
    450,461
    
    
    
    260,422To the financial sector (1)
    
    
    161,702
    
    
    
    152,475
    
    
    
    9,227
    
    
    
    To the non-financial private sector and
foreign residentsOverdrafts (2)
    
    
    1,521,884
    
    
    
    1,517,132
    
    
    
    4,752
    
    
    
    Documents (3)
    
    
    1,090,591
    
    
    
    987,483
    
    
    
    97,130
    
    
    
    5,978Mortgages loans
    
    
    648,312
    
    
    
    130,795
    
    
    
    306,287
    
    
    
    211,230Pledged loans (4)
    
    
    361,712
    
    
    
    170,422
    
    
    
    191,146
    
    
    
    144Consumer loans (5)
    
    
    3,964,492
    
    
    
    1,624,110
    
    
    
    2,166,162
    
    
    
    174,220Other loans
    
    
    1,748,665
    
    
    
    1,398,025
    
    
    
    280,637
    
    
    
    70,003Total loans
    
    
    10,229,839
    
    
    
    6,002,040
    
    
    
    3,505,802
    
    
    
    721,997Percentage of total loan portfolio
    
    
    100.00
    %
    
    
    59.00
    %
    
    
    34.00
    %
    
    
    7.00
    %
 (1)
    
    Includes loans to financial institutions.(2)
    
    Overdrafts include overdrafts lines of credit resulting from checking accounts.(3)
    
    Includes the face value of drafts, promissory notes and other bills transferred to us by
endorsement for which the assignor is liable, whenever the latter is an Argentine resident within
the financial sector. The difference between the face value of the bill and the amount effectively
disbursed will be credited Loans-In Argentina Pesos-Argentine residents-Financial
sector-Principals-(Unearned discount).(4)
    
    Includes the principal amount actually lent of automobile and personal loans granted, for which
the obligor is part of the non-financial private sector.(5)
    
    Consumer loans include credit card loans and other consumer loans. Overdrafts to individuals
are included under Overdrafts. Loansportfolio classification
  As of December 31,2005
    
    
    %
    
    
    2006
    
    
    %
    
    
    2007
    
    
    %(in thousands of pesos, except percentages)Loan PortfolioCategories1 - Normal
    
    
    3,442,625
    
    
    
    93.69
    %
    
    
    6,550,389
    
    
    
    97.25
    %
    
    
    9,927,876
    
    
    
    97.05
    %2 - Low risk / Under
observation  Under
negotiation or subject to
refinancing agreements
    
    
    35,891
    
    
    
    0.98
    %
    
    
    50,077
    
    
    
    0.74
    %
    
    
    143,128
    
    
    
    1.40
    %3 - Medium Risk/With problems
    
    
    26,711
    
    
    
    0.73
    %
    
    
    45,603
    
    
    
    0.68
    %
    
    
    52,059
    
    
    
    0.51
    %4 - High Risk /With high
risk of insolvency
    
    
    33,979
    
    
    
    0.92
    %
    
    
    34,503
    
    
    
    0.51
    %
    
    
    62,856
    
    
    
    0.61
    %5 - Irrecoverable
    
    
    126,189
    
    
    
    3.43
    %
    
    
    51,086
    
    
    
    0.76
    %
    
    
    36,526
    
    
    
    0.36
    %6 - Irrecoverable by
technical decision
    
    
    9,257
    
    
    
    0.25
    %
    
    
    4,028
    
    
    
    0.06
    %
    
    
    7,394
    
    
    
    0.07
    %Total loans
    
    
    3,674,652
    
    
    
    100
    %
    
    
    6,735,686
    
    
    
    100
    %
    
    
    10,229,839
    
    
    
    100
    %
 Analysis of the allowance for loan losses
  Year Ended December 31,2003(1)
    
    
    2004
    
    
    2005
    
    
    2006
    
    
    2007(in thousands of pesos, except percentages)Balance at the beginning of the year
    
    
    116,125
    
    
    
    56,279
    
    
    
    225,340
    
    
    
    247,532
    
    
    
    208,581Provisions for loan losses
    
    
    35,504
    
    
    
    201,253
    (4)
    
    
    142,045
    (5)
    
    
    102,538
    (6)
    
    
    93,498Write offs and reversals
    
    
    (95,350
    )
    
    
    (32,192
    )
    
    
    (119,853
    )
    
    
    (141,489
    )
    
    
    (81,657
    )Overdrafts
    
    
    (24,709
    )
    
    
    (4,374
    )
    
    
    (4,777
    )
    
    
    (31,584
    )
    
    
    (13,889
    )Personal loans
    
    
    (3,765
    )
    
    
    (3,181
    )
    
    
    (1,657
    )
    
    
    (4,411
    )
    
    
    (10,929
    )Credit Cards
    
    
    (7,436
    )
    
    
    (865
    )
    
    
    (993
    )
    
    
    (2,184
    )
    
    
    (5,751
    )Mortgage loans
    
    
    (4,331
    )
    
    
    (1,252
    )
    
    
    (41,518
    )
    
    
    (25,825
    )
    
    
    (8,071
    )Pledge loans
    
    
    (8,298
    )
    
    
    (7,185
    )
    
    
    (26,758
    )
    
    
    (4,323
    )
    
    
    (674
    )Documents
    
    
    (5,020
    )
    
    
    (8,696
    )
    
    
    (25,469
    )
    
    
    (39,974
    )
    
    
    (6,931
    )Other
    
    
    (41,791
    )
    
    
    (6,639
    )
    
    
    (18,681
    )
    
    
    (33,188
    )
    
    
    (35,412
    )Balance at the end of year
    
    
    56,279
    
    
    
    225,340
    
    
    
    247,532
    
    
    
    208,581
    
    
    
    220,422Charge-off/average loans(2)
    
    
    3.26
    %
    
    
    2.22
    %
    
    
    2.22
    %
    
    
    1.15
    %
    
    
    1.16
    %Net charge-off/average loans(3)
    
    
    (4.58
    )%
    
    
    1.29
    %
    
    
    (0.78
    )%
    
    
    (1.14
    )%
    
    
    (0.47
    )%
 (1)
    
    In constant pesos as of February 28, 2003.(2)
    
    Defined as charge-offs plus direct charge-offs divided by average loans.(3)
    
    Defined as charge-offs plus direct charge-offs minus bad debts recovered and reversals
divided by average loans.(4)
    
    Includes Ps. 143,457 thousand of Nuevo Banco Suquía.(5)
    
    Includes Ps. 74,775 thousand for the incorporation of Banco Empresario de Tucumán.(6)
    
    Includes Ps. 13,993 thousand and Ps. 28,443 thousand for the incorporations of Banco del
Tucumán and Nuevo Banco Bisel, respectively.  48




---



##### Table of Contents



Allocation of the allowances for loan losses
  Year Ended December 31,2005
    
    
    2006
    
    
    2007(in thousands of pesos, except percentages)Overdrafts
    
    
    39,074
    
    
    
    15.79
    %
    
    
    24,987
    
    
    
    11.98
    %
    
    
    25,510
    
    
    
    11.57
    %Documents
    
    
    62,508
    
    
    
    25.25
    %
    
    
    20,326
    
    
    
    9.75
    %
    
    
    23,215
    
    
    
    10.53
    %Mortgage loans
    
    
    43,747
    
    
    
    17.67
    %
    
    
    22,640
    
    
    
    10.86
    %
    
    
    20,210
    
    
    
    9.17
    %Pledged loans
    
    
    9,337
    
    
    
    3.77
    %
    
    
    8,433
    
    
    
    4.04
    %
    
    
    8,608
    
    
    
    3.91
    %Personal loans
    
    
    13,736
    
    
    
    5.55
    %
    
    
    40,364
    
    
    
    19.35
    %
    
    
    70,375
    
    
    
    31.93
    %Credit cards
    
    
    6,783
    
    
    
    2.74
    %
    
    
    12,752
    
    
    
    6.11
    %
    
    
    17,658
    
    
    
    8.01
    %Other
    
    
    72,347
    
    
    
    29.23
    %
    
    
    79,079
    
    
    
    37.91
    %
    
    
    54,846
    
    
    
    24.88
    %TOTAL
    
    
    247,532
    
    
    
    100
    %
    
    
    208,581
    
    
    
    100
    %
    
    
    220,422
    
    
    
    100
    %
 Loans by Economic Activities
  As of December 31,2005
    
    
    2006
    
    
    2007Loan
    
    
    % of Loan
    
    
    Loan
    
    
    % of Loan
    
    
    Loan
    
    
    % of LoanPortfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio(in thousands of pesos, except percentages)Animals keeping, cattle services
(except veterinary and trading)
    
    
    166,627
    
    
    
    4.53
    
    
    
    180,901
    
    
    
    2.69
    
    
    
    197,089
    
    
    
    1.93Construction
    
    
    220,663
    
    
    
    6.01
    
    
    
    320,484
    
    
    
    4.76
    
    
    
    411,725
    
    
    
    4.02Crops, agricultural services and trading
    
    
    270,960
    
    
    
    7.37
    
    
    
    440,961
    
    
    
    6.55
    
    
    
    709,766
    
    
    
    6.94Elaboration and trading of chemical
substances and products
    
    
    39,604
    
    
    
    1.08
    
    
    
    49,797
    
    
    
    0.74
    
    
    
    174,557
    
    
    
    1.71Elaboration and trading of foodstuff
and beverages
    
    
    235,114
    
    
    
    6.4
    
    
    
    537,905
    
    
    
    7.99
    
    
    
    700,917
    
    
    
    6.85Electricity, gas, steam and hot water
    
    
    14,631
    
    
    
    0.4
    
    
    
    21,860
    
    
    
    0.32
    
    
    
    69,884
    
    
    
    0.68Extraction, exploitation and trading of
petroleums related products
    
    
    21,466
    
    
    
    0.58
    
    
    
    250,632
    
    
    
    3.72
    
    
    
    165,893
    
    
    
    1.62Financial trading and other financial
services
    
    
    240,097
    
    
    
    6.53
    
    
    
    593,423
    
    
    
    8.80
    
    
    
    408,002
    
    
    
    3.99Fishing, related services, elaboration
and trading
    
    
    1,099
    
    
    
    0.03
    
    
    
    629
    
    
    
    0.01
    
    
    
    1,161
    
    
    
    0.01Given to persons non-included in the
other categories
    
    
    678,891
    
    
    
    18.47
    
    
    
    1,719,736
    
    
    
    25.53
    
    
    
    3,410,361
    
    
    
    33.34Hotels and restaurants
    
    
    48,586
    
    
    
    1.32
    
    
    
    43,196
    
    
    
    0.64
    
    
    
    39,365
    
    
    
    0.38Hunting and seizure of alive animals,
resettlement of hunting animals and
related services, forestry, wood
extraction and related services
    
    
    1,686
    
    
    
    0.05
    
    
    
    2,710
    
    
    
    0.04
    
    
    
    2,422
    
    
    
    0.02Manufacturing Industry
    
    
    345
    
    
    
    0.01
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.00Mass and retail trading, reparation of
automotive vehicles, motorbikes,
personal effects and domestic chattels
    
    
    17
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.00Mass elaboration and production of
machinery and equipments (all),
electrical devices, radio equipment and
devices, television and communications,
medical, optical and pinpoint devices,
watches
    
    
    20,639
    
    
    
    0.56
    
    
    
    64,505
    
    
    
    0.96
    
    
    
    60,266
    
    
    
    0.59
  49




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##### Table of Contents



As of December 31,2005
    
    
    2006
    
    
    2007Loan
    
    
    % of Loan
    
    
    Loan
    
    
    % of Loan
    
    
    Loan
    
    
    % of LoanPortfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio
    
    
    Portfolio(in thousands of pesos, except percentages)Mass elaboration and production of
automotive vehicles, trailers and semi
trailers and transportation
    
    
    5,035
    
    
    
    0.14
    
    
    
    49,198
    
    
    
    0.73
    
    
    
    60,416
    
    
    
    0.59Mass elaboration and production of
textile products and dresses, finishing
and staining of skins, leathering and
finishing of leathers, elaboration of
footwear and saddlery articles and
their parts
    
    
    50,161
    
    
    
    1.37
    
    
    
    33,425
    
    
    
    0.50
    
    
    
    45,488
    
    
    
    0.44Mass trading and/or on commission or
consignment except automotive vehicles
and motorbikes trading
    
    
    77,002
    
    
    
    2.10
    
    
    
    179,075
    
    
    
    2.66
    
    
    
    212,318
    
    
    
    2.08Mines and quarries exploitation and
selling and making of extracted
products (except petroleum and gas)
    
    
    1,333
    
    
    
    0.04
    
    
    
    255
    
    
    
    
    
    
    
    56,446
    
    
    
    0.55Mines and quarries exploitation.
Selling and making of extracted
products
    
    
    3,102
    
    
    
    0.08
    
    
    
    24,949
    
    
    
    0.37
    
    
    
    83,218
    
    
    
    0.81Other
    
    
    172,268
    
    
    
    4.69
    
    
    
    288,241
    
    
    
    4.28
    
    
    
    851,836
    
    
    
    8.33Other services
    
    
    275,376
    
    
    
    7.49
    
    
    
    474,325
    
    
    
    7.04
    
    
    
    970,585
    
    
    
    9.49Public administration, compulsory guard
and social security
    
    
    669,267
    
    
    
    18.21
    
    
    
    771,797
    
    
    
    11.46
    
    
    
    747,570
    
    
    
    7.31Real estate, owners and leasing
    
    
    57,698
    
    
    
    1.57
    
    
    
    39,087
    
    
    
    0.58
    
    
    
    59,512
    
    
    
    0.58Retail trading except automotive
vehicles, motorbikes, personal effects
and domestic chattels trading
    
    
    169,129
    
    
    
    4.60
    
    
    
    307,413
    
    
    
    4.56
    
    
    
    409,231
    
    
    
    4.00Teaching, social and healthcare
    
    
    47,846
    
    
    
    1.30
    
    
    
    73,017
    
    
    
    1.08
    
    
    
    114,281
    
    
    
    1.12Trading, maintenance and reparation of
automotive vehicles, motorbikes,
personal effects and domestic chattels
    
    
    35,022
    
    
    
    0.95
    
    
    
    63,871
    
    
    
    0.95
    
    
    
    81,513
    
    
    
    0.80Transportation, storage and
communications
    
    
    141,039
    
    
    
    3.84
    
    
    
    195,094
    
    
    
    2.90
    
    
    
    181,646
    
    
    
    1.78Water catchment, purifying and
distribution
    
    
    9,949
    
    
    
    0.28
    
    
    
    9,200
    
    
    
    0.14
    
    
    
    4,371
    
    
    
    0.04Total
    
    
    3,674,652
    
    
    
    100.00
    
    
    
    6,735,686
    
    
    
    100.00
    
    
    
    10,229,839
    
    
    
    100.00
 Composition of deposits
  Year ended December 31,2005
    
    
    2006
    
    
    2007(in thousands of pesos)Deposits in Domestic Bank OfficesNon-interest-bearing DemandDeposits(1)AveragePesos
    
    
    1,691,599
    
    
    
    2,014,003
    
    
    
    3,067,834Dollars
    
    
    45,936
    
    
    
    3,266
    
    
    
    6,180Total
    
    
    1,737,535
    
    
    
    2,017,269
    
    
    
    3,074,014Saving AccountsAveragePesos
    
    
    635,072
    
    
    
    950,338
    
    
    
    1,444,795Dollars
    
    
    85,130
    
    
    
    130,478
    
    
    
    174,476Total
    
    
    720,202
    
    
    
    1,080,816
    
    
    
    1,619,271Certificates of DepositsAveragePesos
    
    
    2,652,277
    
    
    
    3,056,186
    
    
    
    4,589,993Dollars
    
    
    609,708
    
    
    
    909,362
    
    
    
    1,211,832Total
    
    
    3,261,985
    
    
    
    3,965,548
    
    
    
    5,801,825
  50




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##### Table of Contents



Year ended December 31,2005
    
    
    2006
    
    
    2007(in thousands of pesos)Interest-Bearing Demand DepositsAveragePesos
    
    
    
    
    
    
    524,135
    
    
    
    1,042,132Dollars
    
    
    
    
    
    
    54,139
    
    
    
    122,996Total
    
    
    
    
    
    
    578,274
    
    
    
    1,165,128Deposits in Foreign Bank OfficesNon-interest-bearing Demand DepositsAveragePesos
    
    
    238
    
    
    
    465
    
    
    
    1,215Dollars
    
    
    19
    
    
    
    236
    
    
    
    500Total
    
    
    257
    
    
    
    701
    
    
    
    1,715Certificates of DepositsAverageDollars
    
    
    218,528
    
    
    
    280,823
    
    
    
    226,009Total
    
    
    218,528
    
    
    
    280,823
    
    
    
    226,009Interest-bearing Demand DepositsAverageDollars
    
    
    27,828
    
    
    
    31,559
    
    
    
    81,435Total
    
    
    27,828
    
    
    
    31,559
    
    
    
    81,435
 (1)
    
    Non-interest-bearing demand deposits consist of checking accounts. Maturity of deposits at December 31, 2007
  MaturingAfter 3
    
    
    After 6Within 3
    
    
    but Within
    
    
    but Within
    
    
    After 12Total
    
    
    Months
    
    
    6 Months
    
    
    12 Months
    
    
    Months(in thousands of pesos)Checking accounts
    
    
    3,560,390
    
    
    
    3,560,390
    
    
    
    
    
    
    
    
    
    
    
    Savings accounts
    
    
    2,845,965
    
    
    
    2,845,965
    
    
    
    
    
    
    
    
    
    
    
    Time deposits
    
    
    6,645,504
    
    
    
    5,631,022
    
    
    
    518,470
    
    
    
    474,331
    
    
    
    21,681Investment accounts
    
    
    116,313
    
    
    
    6,079
    
    
    
    81,221
    
    
    
    22,902
    
    
    
    6,111Other
    
    
    422,977
    
    
    
    420,043
    
    
    
    950
    
    
    
    1,984
    
    
    
    Total
    
    
    13,591,149
    
    
    
    12,463,499
    
    
    
    600,641
    
    
    
    499,217
    
    
    
    27,792
 Maturity of deposits at December 31, 2007 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
    
    
    4,000,698
    
    
    
    3,022,471
    
    
    
    470,002
    
    
    
    481,284
    
    
    
    26,941Foreign bank offices
    
    
    208,609
    
    
    
    190,991
    
    
    
    17,127
    
    
    
    
    
    
    
    491Total
    
    
    4,209,307
    
    
    
    3,213,462
    
    
    
    487,129
    
    
    
    481,284
    
    
    
    27,432
  51




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##### Table of Contents



Short-term borrowings
  Year Ended December 31,2005
    
    
    2006
    
    
    2007Annualized
    
    
    
    
    
    
    Annualized
    
    
    
    
    
    
    AnnualizedAmount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate(in thousands of pesos, except percentagesCentral Bank of the
Argentine Republic(1):Total amount outstanding at
the end of the reported
period
    
    
    34,353
    
    
    
    3.6
    %
    
    
    69,062
    
    
    
    1.95
    %
    
    
    72,526
    
    
    
    1.97
    %Average during year
    
    
    35,495
    
    
    
    3.5
    %
    
    
    51,248
    
    
    
    1.95
    %
    
    
    70,068
    
    
    
    1.97
    %Maximum quarter-end balance
    
    
    42,379
    
    
    
    
    
    
    
    69,062
    
    
    
    
    
    
    
    72,526Banks and international
organizations:Total amount outstanding at
the end of the reported
period
    
    
    158,544
    
    
    
    5.6
    %
    
    
    28,930
    
    
    
    5.92
    %
    
    
    7,279
    
    
    
    7.11
    %Average during year(3)
    
    
    122,741
    
    
    
    4.7
    %
    
    
    55,445
    
    
    
    6.28
    %
    
    
    125,827
    
    
    
    7.35
    %Maximum quarter-end balance
    
    
    160,235
    
    
    
    
    
    
    
    158,699
    
    
    
    
    
    
    
    166,178Corporate BondsTotal amount outstanding at
the end of the reported
period
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,947
    
    
    
    8.76
    %Average during year(3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15,343
    
    
    
    8.97
    %Maximum quarter-end balance
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,947Financing received from
Argentine financial
institutions:Total amount outstanding at
the end of the reported
period
    
    
    3,480
    
    
    
    3.0
    %
    
    
    27,721
    
    
    
    6.40
    %
    
    
    119,038
    
    
    
    6.75
    %Average during year(3)
    
    
    20,524
    
    
    
    2.5
    %
    
    
    10,627
    
    
    
    4.35
    %
    
    
    68,801
    
    
    
    6.56
    %Maximum quarter-end balance
    
    
    35,908
    
    
    
    
    
    
    
    27,721
    
    
    
    
    
    
    
    119,038Other(2)Total amount outstanding at
the end of the reported
period
    
    
    
    
    
    
    
    
    
    
    250,096
    
    
    
    
    
    
    
    412,161
    
    
    
    0.03
    %Average during year(3)
    
    
    29,654
    
    
    
    1.8
    %
    
    
    209,294
    
    
    
    
    
    
    
    341,471
    
    
    
    0.01
    %Maximum quarter-end balance
    
    
    60,300
    
    
    
    
    
    
    
    250,096
    
    
    
    
    
    
    
    412,161Subordinated corporate bonds:Total amount outstanding at
the end of the reported
period
    
    
    9,299
    
    
    
    7.2
    %
    
    
    45,150
    
    
    
    7.61
    %
    
    
    16,404
    
    
    
    8.03
    %Average during year(3)
    
    
    8,449
    
    
    
    7.4
    %
    
    
    29,835
    
    
    
    7.73
    %
    
    
    29,651
    
    
    
    8.25
    %Maximum quarter-end balance
    
    
    9,299
    
    
    
    
    
    
    
    54,588
    
    
    
    
    
    
    
    59,288Total Short Term
    
    
    205,676
    
    
    
    
    
    
    
    420,959
    
    
    
    
    
    
    
    646,355
 (1)
    
    On February 2, 2005, Nuevo Banco Suquía made the early repayment of the remainder of such
credit lines.(2)
    
    Includes liability to the Central Bank to acquire Boden 2012.(3)
    
    Average balances are calculated from quarterly- end balances. Return
on equity and assets
  Year Ended December 31,2005
    
    
    2006
    
    
    2007(in thousands of pesos, except percentages)Net income
    
    
    262,746
    
    
    
    424,340
    
    
    
    495,200Average total assets
    
    
    9,357,401
    
    
    
    11,791,622
    
    
    
    17,713,916Average shareholders equity
    
    
    1,333,163
    
    
    
    1,915,245
    
    
    
    2,456,353Shareholders equity at the end of the fiscal year
    
    
    1,489,652
    
    
    
    2,315,097
    
    
    
    2,707,706Net income as a percentage of:Average total assets
    
    
    2.81
    %
    
    
    3.60
    %
    
    
    2.80
    %Average shareholders equity
    
    
    19.71
    %
    
    
    22.16
    %
    
    
    20.16
    %Declared cash dividends
    
    
    30,447
    
    
    
    68,395
    
    
    
    102,591Dividend payout ratio(1)
    
    
    11.59
    %
    
    
    16.12
    %
    
    
    20,72
    %Average shareholders equity as a percentage of Average Total Assets
    
    
    14.25
    %
    
    
    16.24
    %
    
    
    13.87
    %
 (1)
    
    Declared cash dividends stated as percentage of net income when they are paid.  52




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##### Table of Contents



Interest rate sensitivity
  Remaining Maturity at December 31, 2007Over 10
    
    
    Without due
    
    
    Total0-1 Year
    
    
    1-5 Years
    
    
    5-10 Years
    
    
    years
    
    
    date
    
    
    (2)Interest-earning assets:Interest-bearing deposits in Central
Bank
    
    
    2,022,430
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,022,430Interest-bearing deposits in other banks
    
    
    224,179
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    224,179Government and private securities
    
    
    3,002,622
    
    
    
    700,450
    
    
    
    128,024
    
    
    
    25,700
    
    
    
    
    
    
    
    3,856,796Goods in financial leasing
    
    
    142,570
    
    
    
    214,932
    
    
    
    15,364
    
    
    
    
    
    
    
    
    
    
    
    372,866Loans to non-financial government
sector(1)
    
    
    21,598
    
    
    
    450,461
    
    
    
    240,512
    
    
    
    19,910
    
    
    
    
    
    
    
    732,481Loans to private and financial sector(1)
    
    
    5,980,442
    
    
    
    3,055,341
    
    
    
    352,743
    
    
    
    108,834
    
    
    
    
    
    
    
    9,497,360Other assets
    
    
    122,994
    
    
    
    95,332
    
    
    
    199
    
    
    
    150,644
    
    
    
    278,411
    
    
    
    647,580Total Interest-Earning Assets
    
    
    11,516,835
    
    
    
    4,516,516
    
    
    
    736,842
    
    
    
    305,088
    
    
    
    278,411
    
    
    
    17,353,692Interest-bearing liabilities:Savings accounts
    
    
    2,845,965
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,845,965Time deposits
    
    
    6,621,190
    
    
    
    21,671
    
    
    
    10
    
    
    
    
    
    
    
    
    
    
    
    6,642,871Investment accounts
    
    
    110,202
    
    
    
    6,101
    
    
    
    10
    
    
    
    
    
    
    
    
    
    
    
    116,313Corporate Bonds
    
    
    18,947
    
    
    
    307,940
    
    
    
    472,650
    
    
    
    
    
    
    
    
    
    
    
    799,537Subordinated corporate bonds
    
    
    16,404
    
    
    
    1,641
    
    
    
    
    
    
    
    472,650
    
    
    
    
    
    
    
    490,695Liabilities with Central Bank
    
    
    71,532
    
    
    
    274,836
    
    
    
    
    
    
    
    534
    
    
    
    
    
    
    
    346,902Liabilities with local financial
institutions
    
    
    119,038
    
    
    
    13,146
    
    
    
    27,040
    
    
    
    1,072
    
    
    
    
    
    
    
    160,296Liabilities with bank and international
institutions
    
    
    7,279
    
    
    
    157,550
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    164,829Other liabilities
    
    
    243,092
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    243,092Total Interest-Bearing Liabilities
    
    
    10,053,649
    
    
    
    782,885
    
    
    
    499,710
    
    
    
    474,256
    
    
    
    
    
    
    
    11,810,500Asset/Liability Gap
    
    
    1,463,186
    
    
    
    3,733,631
    
    
    
    237,132
    
    
    
    (169,168
    )
    
    
    278,411
    
    
    
    5,543,192Cumulative Asset/Liability Gap
    
    
    1,463,186
    
    
    
    5,196,817
    
    
    
    5,433,949
    
    
    
    5,264,781
    
    
    
    5,543,192Cumulative sensitivity gap as a
percentage of total interest-earning
assets
    
    
    8.43
    %
    
    
    29.95
    %
    
    
    31.31
    %
    
    
    30.34
    %
    
    
    31.94
    %
  53




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##### Table of Contents



Remaining Maturity at December 31, 2007Over 10
    
    
    Without due
    
    
    Total0-1 Year
    
    
    1-5 Years
    
    
    5-10 Years
    
    
    years
    
    
    date
    
    
    (2)Interest-earning assets in Pesos:Interest-bearing deposits in Central
Bank
    
    
    1,445,938
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,445,938Interest-bearing deposits in other banks
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Government and private securities
    
    
    2,978,729
    
    
    
    608,522
    
    
    
    36,400
    
    
    
    24,135
    
    
    
    
    
    
    
    3,647,786Goods in financial leasing
    
    
    141,122
    
    
    
    207,707
    
    
    
    3,490
    
    
    
    
    
    
    
    
    
    
    
    352,319Loans to non-financial government
sector(1)
    
    
    21,598
    
    
    
    450,461
    
    
    
    240,512
    
    
    
    19,910
    
    
    
    
    
    
    
    732,481Loans to private and financial sector(1)
    
    
    4,526,284
    
    
    
    2,956,267
    
    
    
    322,518
    
    
    
    98,433
    
    
    
    
    
    
    
    7,903,502Other assets
    
    
    69,891
    
    
    
    17,028
    
    
    
    
    
    
    
    150,575
    
    
    
    278,199
    
    
    
    515,693Total Interest-Earning Assets
    
    
    9,183,562
    
    
    
    4,239,985
    
    
    
    602,920
    
    
    
    293,053
    
    
    
    278,199
    
    
    
    14,597,719Interest-bearing liabilities in Pesos:Saving accounts
    
    
    2,505,123
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,505,123Time deposits
    
    
    5,002,552
    
    
    
    21,021
    
    
    
    9
    
    
    
    
    
    
    
    
    
    
    
    5,023,582Investment accounts
    
    
    102,577
    
    
    
    
    
    
    
    10
    
    
    
    
    
    
    
    
    
    
    
    102,587Corporate bonds
    
    
    2,207
    
    
    
    307,940
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    310,147Subordinated corporate bonds
    
    
    862
    
    
    
    1,641
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,503Liabilities with Central Bank
    
    
    71,532
    
    
    
    274,836
    
    
    
    
    
    
    
    534
    
    
    
    
    
    
    
    346,902Liabilities with local financial
institutions
    
    
    48,611
    
    
    
    13,146
    
    
    
    27,040
    
    
    
    1,072
    
    
    
    
    
    
    
    89,869Other liabilities
    
    
    182,681
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    182,681Total Interest-Bearing Liabilities
    
    
    7,916,145
    
    
    
    618,584
    
    
    
    27,059
    
    
    
    1,606
    
    
    
    
    
    
    
    8,563,394Asset/Liability Gap
    
    
    1,267,417
    
    
    
    3,621,401
    
    
    
    575,861
    
    
    
    291,447
    
    
    
    278,199
    
    
    
    6,034,325Cumulative Asset/Liability Gap
    
    
    1,267,417
    
    
    
    4,888,818
    
    
    
    5,464,679
    
    
    
    5,756,126
    
    
    
    6,034,325Cumulative sensitivity gap as a
percentage of total interest-earning
assets
    
    
    8.68
    %
    
    
    33.49
    %
    
    
    37.44
    %
    
    
    39.43
    %
    
    
    41.34
    %Remaining Maturity at December 31, 2007Over 10
    
    
    Without due
    
    
    Total0-1 Year
    
    
    1-5 Years
    
    
    5-10 Years
    
    
    years
    
    
    date
    
    
    (2)Interest-earning assets in foreign
currencyInterest-bearing deposits in Central
Bank
    
    
    576,492
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    576,492Interest-bearing deposits in other banks
    
    
    224,179
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    224,179Government securities
    
    
    23,893
    
    
    
    91,928
    
    
    
    91,624
    
    
    
    1,565
    
    
    
    
    
    
    
    209,010Goods in financial leasing
    
    
    1,448
    
    
    
    7,225
    
    
    
    11,874
    
    
    
    
    
    
    
    
    
    
    
    20,547Loans to private and financial sector(1)
    
    
    1,454,155
    
    
    
    99,075
    
    
    
    30,225
    
    
    
    10,401
    
    
    
    
    
    
    
    1,593,856Other assets
    
    
    53,103
    
    
    
    78,304
    
    
    
    199
    
    
    
    69
    
    
    
    211
    
    
    
    131,886Total Interest-Earning Assets
    
    
    2,333,270
    
    
    
    276,532
    
    
    
    133,922
    
    
    
    12,035
    
    
    
    211
    
    
    
    2,755,970
  54




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##### Table of Contents



Remaining Maturity at December 31, 2007Over 10
    
    
    Without due
    
    
    Total0-1 Year
    
    
    1-5 Years
    
    
    5-10 Years
    
    
    years
    
    
    date
    
    
    (2)Interest-bearing liabilities in foreign
currency:Saving accounts
    
    
    340,842
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    340,842Time deposits
    
    
    1,618,638
    
    
    
    650
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    1,619,289Investment accounts
    
    
    7,625
    
    
    
    6,101
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,726Corporate bonds
    
    
    16,740
    
    
    
    
    
    
    
    472,650
    
    
    
    
    
    
    
    
    
    
    
    489,390Subordinated corporate bonds
    
    
    15,542
    
    
    
    
    
    
    
    
    
    
    
    472,650
    
    
    
    
    
    
    
    488,192Liabilities with Central Bank
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Liabilities with local financial
institutions
    
    
    70,427
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    70,427Liabilities with banks and financial
organizations
    
    
    7,279
    
    
    
    157,550
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    164,829Other liabilities
    
    
    60,411
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    60,411Total Interest-Bearing Liabilities
    
    
    2,137,504
    
    
    
    164,301
    
    
    
    472,651
    
    
    
    472,650
    
    
    
    
    
    
    
    3,247,106Asset/Liability Gap
    
    
    195,766
    
    
    
    112,231
    
    
    
    (338,729
    )
    
    
    (460,615
    )
    
    
    211
    
    
    
    (491,136
    )Cumulative Asset/Liability Gap
    
    
    195,766
    
    
    
    307,997
    
    
    
    (30,732
    )
    
    
    (491,347
    )
    
    
    (491,136
    )Cumulative sensitivity gap as a
percentage of total interest-earning
assets
    
    
    7.10
    %
    
    
    11.18
    %
    
    
    (1.12
    )%
    
    
    (17.83
    )%
    
    
    (17.82
    )%
 (1)
    
    Loan amounts are stated before deducting the allowance for loan losses. Non-accrual loans are
included with loans as interest-earning asset.(2)
    
    Includes instruments issued by the Central Bank. Item 4A. Unresolved Staff Comments
  
 Item 5. Operating and Financial Review and Prospects
   A. Operating results
 FINANCIAL PRESENTATION
   55




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##### Table of Contents



COMPARABILITY
  OVERVIEW
   Plan Sueldo Plan Sueldo
  IMPACT OF THE 2001-2002 ECONOMIC CRISIS ON US
 corralito,
corralón
  56




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##### Table of Contents



The run on bank deposits and restrictions on withdrawals
  o
    
    Corralito
 corralito,
 o
    
    Corralón
 corralón, corralón, CEDROs
 Phase 1. Bank run:
    
    December 31, 2000 to November 30, 2001Phase 2. Corralito:
    
    November 30, 2001 to December 31, 2001Phase 3. Corralón:
    
    January 31, 2002 to April 30, 2002Phase 4. Stabilization:
    
    April 30, 2002 to April 30, 2003Phase 5. Recovery:
    
    April 30, 2003 to December 31, 2006Phase 6. Growth:
    
    December 31, 2006 to December 31, 2007
 Phase 1:Bank
    
    
    Phase 2:
    
    
    Phase 3:
    
    
    Phase 4:
    
    
    Phase 5:
    
    
    Phase 6:Run(1)
    
    
    Corralito
    
    
    Corralón(2)
    
    
    Stabilization
    
    
    Recovery(3)
    
    
    Growth(4)Banco Macro
    
    
    (171
    )
    
    
    8
    
    
    
    (21
    )
    
    
    295Banco Bansud
    
    
    (354
    )
    
    
    (29
    )
    
    
    (183
    )
    
    
    337Banco Macro and Banco Bansud
    
    
    (525
    )
    
    
    (21
    )
    
    
    (204
    )
    
    
    632
    
    
    
    7,898
    
    
    
    3,556Financial system
    
    
    (18,205
    )
    
    
    (1,918
    )
    
    
    (10,010
    )
    
    
    7,646
    
    
    
    91,682
    
    
    
    34,653
 Source: Central Bank(1)
    
    We excluded the month of January 2002 because of the impact on nominal changes caused by the
pesification of U.S. dollar-denominated deposits.(2)
    
    Banco Macro acquired Banco Bansud in January 2002; however, the information in the table above
has not been consolidated for the corralón phase as we were just beginning to manage Banco Bansud
during that period.(3)
    
    Including acquisitions of Nuevo Banco Suquía, Banco del Tucumán and Nuevo Banco Bisel.(4)
    
    Including Banco del Tucumán and Nuevo Banco Bisel. Asymmetric pesification and the Argentine governments compensation measures
  
    
    a bond denominated in pesos (BODEN 2007) to compensate for losses linked to asymmetric
pesification; and
    
    a bond denominated in dollars (BODEN 2012) that the Central Bank offered to affected
banks at a discounted price of Ps.1.40 plus CER indexation to US$1.00, to compensate for
the consequences of creating a mismatch between a banks dollar and peso position as a
result of pesification. Banks could purchase the BODEN 2012 with either BODEN 2007 or by
borrowing the applicable amount from the Central Bank.
  57




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##### Table of Contents



TotalBODEN 2007
    
    
    BODEN 2012
    
    
    Compensation(in millions of pesos)Banco Macro
    
    
    49.7
    
    
    
    
    
    
    
    49.7Banco Bansud
    
    
    
    
    
    
    392
    
    
    
    392Nuevo Banco Suquía
    
    
    209.3
    
    
    
    142.6
    
    
    
    351.9Total
    
    
    259.0
    
    
    
    534.6
    
    
    
    793.6
 Amparos
 corralón, corralito amparos amparos amparos CEDRO amparos amparos
 Amparos/EquityAs of December 31,2005
    
    
    2006
    
    
    2007Banco Macro
    
    
    2.9
    %
    
    
    3.2
    %
    
    
    3.7
    %Financial system
    
    
    19.0
    %
    
    
    9.6
    %
    
    
    4.7
    %
 Source: Central Bank
 Disappearance of market for private loans and increase in non-performing loans
  2002(1)
    
    
    2003(1)
    
    
    2004
    
    
    2005
    
    
    2006(2)
    
    
    2007(3)Net loan
origination (in
millions of pesos)
    
    
    (867.9
    )
    
    
    (58.6
    )
    
    
    584.0
    
    
    
    565.8
    
    
    
    1,352.8
    
    
    
    2,955
 (1)
    
    In constant pesos as of February 28, 2003.(2)
    
    Without Nuevo Banco Bisel and Banco del Tucumán.(3)
    
    Including Nuevo Banco Bisel and Banco del Tucumán. CEDRO corralón CEDRO
  Year Ended December 31,2004
    
    
    2005
    
    
    2006
    
    
    2007Banco MacroAllowances/total loans
    
    
    7.3
    %
    
    
    6.7
    %
    
    
    3.1
    %
    
    
    2.2
    %Non-performing loans ratio
    
    
    6.5
    
    
    
    5.3
    
    
    
    2.0
    
    
    
    1.6Allowances/lending(1)
    
    
    8.8
    %
    
    
    6.5
    %
    
    
    3.1
    %
    
    
    2.2
    %Non-performing lending ratio(2)
    
    
    8.0
    
    
    
    5.0
    (3)
    
    
    2.0
    
    
    
    1.5Financial SystemAllowances/lending(1)
    
    
    9.8
    %
    
    
    5.7
    %
    
    
    3.5
    %
    
    
    3.0
    %Non-performing lending ratio(2)
    
    
    10.3
    
    
    
    5.0
    
    
    
    3.3
    
    
    
    2.6
 Source: Central Bank(1)
    
    Includes loans, other receivables from financial transactions, financial leases, memorandum
accountsother guarantees provided and unused portion of loans granted (included in Debtors Rating
Standards).(2)
    
    Non-performing lending includes all lending to borrowers classified as 3with problems/medium
risk, 4with high risk of insolvency/high risk, 5irrecoverable and 6irrecoverable by
technical decision under the Central Bank loan classification system.(3)
    
    This ratio calculated without the loan portfolio of Banco Empresario de Tucumán (64% of
non-performing lending) is 3.2%.  58




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##### Table of Contents



Devaluation and inflation
  December 31,2003
    
    
    2004
    
    
    2005
    
    
    2006
    
    
    2007Wholesale price inflation
    
    
    1.95
    %
    
    
    7.87
    %
    
    
    10.67
    %
    
    
    7.14
    %
    
    
    14.56
    %Inflation rate adjustment to our financial statements
    
    
    0.86
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    CER(1)
    
    
    3.65
    
    
    
    5.48
    
    
    
    11.75
    
    
    
    10.08
    
    
    
    8.49
 Source: INDEC(1)
    
    CER beginning on February 2, 2002. CEDROs
 OUR RESPONSE TO THE CRISIS
   Commercial and balance sheet strategies
   amparos, CEDROs CEDROs
  59




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##### Table of Contents



Loyal client base
 Plan
Sueldo
 Acquisitions
  December 31,
    
    
    
    
    
    
    
    
    
    
    December 31,
    
    
    December 31,September 30, 2001
    
    
    September 30, 2004
    
    
    2005
    
    
    June 30, 2006
    
    
    2006
    
    
    2007NuevoBancoBiselNuevo
    
    
    Banco
    
    
    
    
    
    (stand-
    
    
    BancoBanco
    
    
    Banco
    
    
    Banco
    
    
    Banco
    
    
    Macro
    
    
    Banco
    
    
    alone)
    
    
    MacroMacro(1)(2)
    
    
    Bansud(1)(2)
    
    
    Macro(2)
    
    
    Suquía(2)
    
    
    (3)
    
    
    Macro(4)
    
    
    (2)
    
    
    (5)
    
    
    Banco Macro(in million of Pesos)Assets
    
    
    1,424.0
    
    
    
    3,357.1
    
    
    
    5,312.6
    
    
    
    2,162.8
    
    
    
    9,487.8
    
    
    
    11,496
    
    
    
    1,934
    
    
    
    14,505.0
    
    
    
    19,781.2Private sector
loans (Gross)
    
    
    590.8
    
    
    
    899.8
    
    
    
    1,187.1
    
    
    
    711.0
    
    
    
    2,948.8
    
    
    
    4,141
    
    
    
    665
    
    
    
    5,524.5
    
    
    
    9,335.7Private sector
deposits
    
    
    790.6
    
    
    
    2,301.5
    
    
    
    2,236.0
    
    
    
    1,443.5
    
    
    
    5,737.4
    
    
    
    6,421
    
    
    
    1,326
    
    
    
    8,770.3
    
    
    
    11,803.7Branches
    
    
    73
    
    
    
    72
    
    
    
    154
    
    
    
    102
    
    
    
    254
    
    
    
    279
    
    
    
    158
    
    
    
    433
    
    
    
    427
 Source: Central Bank
 (1)
    
    In constant pesos as of February 28, 2003.(2)
    
    Last quarter prior to acquisition.(3)
    
    Including NuevoBanco Suquía and Banco Empresario de Tucumán(4)
    
    Including Banco Empresario de Tucumán and Banco del Tucumán(5)
    
    Including Banco Empresario de Tucumán, Banco del Tucumán S.A. and Nuevo Banco Bisel Banco Bansud.
 Scotiabank Quilmes S.A.
 Nuevo Banco Suquía Compromiso Previo de Fusión
  60




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##### Table of Contents



Banco Empresario de Tucumán
 Banco del Tucumán.
 Nuevo Banco Bisel. Seguro de
Depósitos S.A.
    Cost management
  Implementation of improved credit policies
 Plan Sueldo
 Restoring lending to the private sector
   61




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##### Table of Contents



PRINCIPAL TRENDS AFFECTING OUR BUSINESS
  Argentine economic recovery and continued growth
  
    
    Export-led growth in the economy. The recovery of Argentinas post-crisis economy has
been led by export growth and import substitution. This economic model is likely to favor
provinces outside of the City of Buenos Aires that are heavily focused on primary sectors
of the economy, such as agriculture, cattle ranching, mining, basic industries and
tourism. Our extensive branch network outside of the City of Buenos Aires (94 % of our, as
compared to 80% for Argentinas financial system) provides us with an opportunity to take
advantage of growth in these provinces to increase our credit portfolio faster than our
competitors and to increase our market share.
    
    Gradual recovery of proportion of national income held by lower income segments. After
decades of widening, the income distribution gap between rich and poor in Argentina began
to narrow during 2003 and 2004, when the crisis resulted in a collapse of income of all
population segments. The real income of the poorer half of Argentinas population has
fallen over the last decades, from 32% of the income of the richer half in the late 1970s
to less than 20% of the income of the richer half in the aftermath of the crisis. Since
that time, the gap has narrowed and now the real income of the poorer half is higher than
20% of the income of the richer half. We believe that the long-term trend of increasing
income inequality has stopped and that the recent improvement in income distribution will
continue. Given our focus on the low- to medium-income individuals, we believe that we are
well positioned to benefit from an increase in credit demand by these population segments.
    
    Transitional inflation. The inflation rate for the twelve months ended December 31,
2007 was 8.5%. Inflation for 2007 was lower than the 9.8% registered in 2006 and is a
result of the governments policy of keeping the value of the peso to the dollar at the
relatively low level of approximately Ps.3 to US$1. We believe that to the extent that the
market views this exchange rate as being stable, they will be in a better position to
forecast future inflation.
 Reduction in public sector exposure
   
    
    the forms of compensation received by the banking system in the context of asymmetric
pesification, which, as described in greater detail in The crisis and recovery in
Argentina, included BODEN 2007 and BODEN 2012;
    
    the stock of public securities and other public sector obligations that we inherited
upon our acquisition of Banco Bansud in January 2002 and Banco Nuevo Suquía in December
2004;
    
    the purchases of treasury bills, principally in the form of LEBACs and NOBACs, made by
our treasury desk as the preferred investment vehicle for our excess liquidity; and
    
    the slow recovery of private sector lending, which continues at low levels due to
concerns about increased inflation, which has delayed the more rapid development of
long-term lending.
   62




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##### Table of Contents



Recovery of 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.
    
    Demand from large corporations has preceded demand from small and medium-sized
companies and consumers. New lending in Argentina has been primarily fueled by commercial
lending, which for the Argentine banking system represented approximately two-thirds of
new lending in 2004, which we believe to be generated by large corporations. Over the
medium term we expect small and medium-sized companies, which lack access to the
securities markets, to represent a larger component of new lending. Consumer lending has
not yet fully recovered and remains at 5% of GDP as of December 31, 2007, despite having
achieved levels higher than 10% before the crisis.
    
    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, 2007 was
concentrated in short-term products. For example, the ratio of personal loans, overdrafts
and documents to GDP has increased from 3% in June 2003 to 6% as of December 31, 2007
while long-term loans represented by mortgages and secured loans have remained at 2% of
GDP during the same period (despite substantial GDP growth during the period).
    
    Reduced spreads. We expect the high intermediation spreads that prevailed after the
economic crisis to continue to decline due to increasing competition in the banking
sector. The reduction of private sector credit volume has prompted Argentine banks to lend
at lower interest rates in an effort to capture a larger portion of the contracted loan
market, largely accounting for the current low spreads. Additionally, if the Central Bank
increases interest rates to combat inflation, funding costs may increase. The expansionary
monetary policy being undertaken by the Central Bank has resulted in unusually low funding
costs. Interest rates on short-term time deposit accounts remain negative in real terms.
Inflation pressures may push these rates upward in the medium term. If the spread
reduction continues without a significant increase in volumes, profitability will be
negatively affected. This trend will be partially offset for us by our stable depositor
base, which provides a low cost source of funding.
 Organic growth complemented by strategic acquisitions
   Recovery of private sector loan portfolio credit quality
  Recent changes in export tax tariffs and agricultural
 
  63




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##### Table of Contents



RESULTS OF OPERATIONS
    Year ended December 31,2006 (including
    
    
    2007 (includingthe 2006
    
    
    the 20062005
    
    
    acquisitions)
    
    
    acquisitions)(in thousands of pesos except for ratios)Commercial Portfolio
    
    
    2,503
    
    
    
    4,097
    
    
    
    5,291Irregular Commercial Portfolio
    
    
    133
    
    
    
    65
    
    
    
    46Consumer Portfolio
    
    
    1,574
    
    
    
    3,351
    
    
    
    5,700Irregular Consumer Portfolio
    
    
    75
    
    
    
    82
    
    
    
    122Total Portfolio
    
    
    4,077
    
    
    
    7,448
    
    
    
    10,991Total Irregular Portfolio
    
    
    208
    
    
    
    147
    
    
    
    168Irregular/Total Portfolio Ratio
    
    
    5.10
    %
    
    
    1.98
    %
    
    
    1.53
    %Total Provisions
    
    
    266
    
    
    
    230
    
    
    
    238Coverage Ratio
    
    
    127.88
    %
    
    
    156.34
    %
    
    
    141.53
    %
   YEAR ENDED DECEMBER 31, 2007 COMPARED TO YEAR ENDED DECEMBER 31, 2006 AND YEAR ENDED DECEMBER 31,
2006 COMPARED TO YEAR ENDED DECEMBER 31, 2005
   64




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##### Table of Contents



Net Income
  Year ended December 31,2006 without
    
    
    
    
    
    
    2007 without2006
    
    
    
    
    
    
    20062005
    
    
    2006(1)
    
    
    acquisitions(2)
    
    
    2007
    
    
    acquisitions(2)(in thousands of pesos)Financial income
    
    
    749,583
    
    
    
    1,155,207
    
    
    
    993,425
    
    
    
    1,890,422
    
    
    
    1,420,908Financial expenses
    
    
    (302,909
    )
    
    
    (394,897
    )
    
    
    (354,289
    )
    
    
    (805,265
    )
    
    
    (672,428
    )Gross intermediation margin
    
    
    446,674
    
    
    
    760,310
    
    
    
    639,136
    
    
    
    1,085,157
    
    
    
    748,480Provision for loan losses
    
    
    (70,309
    )
    
    
    (59,773
    )
    
    
    (48,872
    )
    
    
    (94,717
    )
    
    
    (71,425
    )Service charge income
    
    
    302,758
    
    
    
    452,232
    
    
    
    388,724
    
    
    
    662,326
    
    
    
    497,312Service charge expenses
    
    
    (59,510
    )
    
    
    (93,323
    )
    
    
    (84,174
    )
    
    
    (150,282
    )
    
    
    (123,012
    )Administrative expenses
    
    
    (443,026
    )
    
    
    (652,457
    )
    
    
    (552,376
    )
    
    
    (957,043
    )
    
    
    (690,454
    )Net other income
    
    
    120,201
    
    
    
    97,490
    
    
    
    155,809
    
    
    
    44,187
    
    
    
    216,188Income before income tax
    
    
    296,788
    
    
    
    504,479
    
    
    
    498,247
    
    
    
    589,628
    
    
    
    577,089Income tax
    
    
    (34,042
    )
    
    
    (76,961
    )
    
    
    (73,961
    )
    
    
    (92,345
    )
    
    
    (81,922
    )Minority Interest
    
    
    
    
    
    
    (3,178
    )
    
    
    54
    
    
    
    (2,083
    )
    
    
    33Net income
    
    
    262,746
    
    
    
    424,340
    
    
    
    424,340
    
    
    
    495,200
    
    
    
    495,200
 (1)
    
    Results for 2006 include the results of Banco del Tucumán from May 5, 2006 and Nuevo
Banco Bisel from August 11, 2006.(2)
    
    The results of Banco del Tucumán and Nuevo Banco Bisel are included in Net Other
Income.  Financial Income
  Year ended December 31,2006 without2006
    
    
    
    
    
    
    2007 without 20062005(1)
    
    
    2006(1)
    
    
    acquisitions
    
    
    2007
    
    
    acquisitions(in thousands of pesos)Interest on cash and due from banks
    
    
    4,080
    
    
    
    11,682
    
    
    
    11,408
    
    
    
    19,917
    
    
    
    18,351Interest on loans to the financial sector
    
    
    5,320
    
    
    
    16,720
    
    
    
    13,786
    
    
    
    32,157
    
    
    
    30,229Interest on overdrafts
    
    
    53,953
    
    
    
    120,040
    
    
    
    96,186
    
    
    
    192,599
    
    
    
    146,661Interest on documents(2)
    
    
    32,157
    
    
    
    56,988
    
    
    
    42,823
    
    
    
    139,102
    
    
    
    59,695Interest on mortgage loans
    
    
    29,655
    
    
    
    48,506
    
    
    
    44,733
    
    
    
    68,065
    
    
    
    55,380Interest on pledge loans(3)
    
    
    26,160
    
    
    
    43,038
    
    
    
    39,427
    
    
    
    51,480
    
    
    
    38,213Interest on credit card loans
    
    
    18,233
    
    
    
    30,969
    
    
    
    27,992
    
    
    
    55,665
    
    
    
    44,371Interest on other loans(4)
    
    
    121,062
    
    
    
    259,801
    
    
    
    230,064
    
    
    
    527,954
    
    
    
    446,927Interest on other receivables from financial
intermediation
    
    
    19,901
    
    
    
    15,050
    
    
    
    13,876
    
    
    
    18,471
    
    
    
    15,176Income from government and private securities, net
    
    
    156,158
    
    
    
    324,178
    
    
    
    262,875
    
    
    
    488,757
    
    
    
    307,048Income from guaranteed loans(5)
    
    
    28,625
    
    
    
    29,898
    
    
    
    26,656
    
    
    
    35,043
    
    
    
    25,965Net income from options
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,604
    
    
    
    1,604CER (Benchmark Stabilization Coefficient)
adjustment(6)
    
    
    185,421
    
    
    
    84,951
    
    
    
    76,928
    
    
    
    78,065
    
    
    
    60,076CVS (Salary Variation Coefficient) adjustment
    
    
    1,987
    
    
    
    1,947
    
    
    
    1,944
    
    
    
    1,605
    
    
    
    1,603Difference in quoted prices of gold and foreign
currency
    
    
    31,392
    
    
    
    40,007
    
    
    
    37,946
    
    
    
    48,823
    
    
    
    41,150Other(7)
    
    
    35,479
    
    
    
    71,432
    
    
    
    66,781
    
    
    
    131,115
    
    
    
    128,459Total financial income
    
    
    749,583
    
    
    
    1,155,207
    
    
    
    993,425
    
    
    
    1,890,422
    
    
    
    1,420,908
 (1)
    
    See note 4.2. to our audited consolidated financial statements for the year ended December 31,
2007.(2)
    
    Includes factoring, check cashing advances and loans with promissory notes.(3)
    
    Includes primarily secured car loans.(4)
    
    Includes interest on loans not classified under prior headings.(5)
    
    Includes loans to the Argentine government that were issued in exchange for federal and provincial government bonds.(6)
    
    Includes CER accrued for all the assets subject to adjustment by CER.(7)
    
    Principally results from leasing activity.  65




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##### Table of Contents



2007 and 2006
    2006 and 2005
    Financial expenses
  Year ended December 31,2006 without
    
    
    
    
    
    
    2007 without2006
    
    
    
    
    
    
    20062005(1)
    
    
    2006(1)
    
    
    acquisitions
    
    
    2007
    
    
    acquisitions(in thousands of pesos)Interest on checking accounts
    
    
    2,647
    
    
    
    9,475
    
    
    
    8,665
    
    
    
    19,968
    
    
    
    18,251Interest on savings accounts
    
    
    4,302
    
    
    
    6,736
    
    
    
    5,976
    
    
    
    11,372
    
    
    
    8,985Interest on time deposits
    
    
    106,486
    
    
    
    233,697
    
    
    
    209,629
    
    
    
    457,395
    
    
    
    382,788Interest on interfinancing received loans (received
call)
    
    
    980
    
    
    
    801
    
    
    
    794
    
    
    
    4,608
    
    
    
    4,572Interest on other financing from the financial sector
    
    
    43
    
    
    
    252
    
    
    
    210
    
    
    
    226
    
    
    
    130Interest on other liabilities from financial
intermediation(2)
    
    
    13,796
    
    
    
    14,421
    
    
    
    14,395
    
    
    
    70,706
    
    
    
    70,608Interest on subordinated bonds
    
    
    1,806
    
    
    
    2,017
    
    
    
    2,017
    
    
    
    49,858
    
    
    
    49,858Other interest
    
    
    11,482
    
    
    
    12,410
    
    
    
    10,648
    
    
    
    9,768
    
    
    
    6,131Net loss from options
    
    
    1,017
    
    
    
    371
    
    
    
    371
    
    
    
    
    
    
    
    CER adjustment(3)
    
    
    117,048
    
    
    
    55,732
    
    
    
    46,633
    
    
    
    43,717
    
    
    
    24,953Contribution to Deposit Guarantee Fund
    
    
    9,701
    
    
    
    12,753
    
    
    
    10,968
    
    
    
    20,182
    
    
    
    15,939Other(4)
    
    
    33,601
    
    
    
    46,232
    
    
    
    43,983
    
    
    
    117,465
    
    
    
    90,213Total financial expenses
    
    
    302,909
    
    
    
    394,897
    
    
    
    354,289
    
    
    
    805,265
    
    
    
    672,428
 (1)
    
    See note 4.2. to our audited consolidated financial statements for the year ended December 31,
2007.(2)
    
    Includes lines of credit from other banks, repurchase agreements and liquidity assistance from
the Central Bank.(3)
    
    Includes CER accrued for all the liabilities subject to adjustment by CER..(4)
    
    Includes interest on deposits in the form of government securities and CEDROs.  66




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##### Table of Contents



2007 and 2006
     2006 and 2005
   Provision for loan losses
 2007 and 2006
 2006 and 2005
 Service charge income
  Year ended December 31,2006 without
    
    
    
    
    
    
    2007 without2006
    
    
    
    
    
    
    20062005(1)
    
    
    2006(1)
    
    
    acquisitions
    
    
    2007
    
    
    acquisitions(in thousands of pesos)Service charges on deposit accounts
    
    
    181,961
    
    
    
    273,976
    
    
    
    224,911
    
    
    
    422,589
    
    
    
    297,457Debit and credit card income
    
    
    22,959
    
    
    
    65,410
    
    
    
    58,975
    
    
    
    92,519
    
    
    
    79,616Other fees related to foreign trade
    
    
    10,630
    
    
    
    11,607
    
    
    
    10,818
    
    
    
    15,947
    
    
    
    13,651Credit-related fees
    
    
    19,175
    
    
    
    35,964
    
    
    
    30,173
    
    
    
    53,995
    
    
    
    36,049Capital markets and securities activities
    
    
    1,666
    
    
    
    2,085
    
    
    
    2,041
    
    
    
    2,951
    
    
    
    2,672Lease of safe-deposit boxes
    
    
    5,712
    
    
    
    8,467
    
    
    
    7,420
    
    
    
    14,049
    
    
    
    9,434Fees related to guarantees
    
    
    570
    
    
    
    5,876
    
    
    
    5,837
    
    
    
    2,789
    
    
    
    2,718Other(2)
    
    
    60,085
    
    
    
    48,847
    
    
    
    48.549
    
    
    
    57,487
    
    
    
    55,715Total service charge income
    
    
    302,758
    
    
    
    452,232
    
    
    
    388,724
    
    
    
    662,326
    
    
    
    497,312
 (1)
    
    See note 4.2 to our audited financial statements for the year ended December 31, 2007.(2)
    
    Includes insurance income.  67




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##### Table of Contents



2007 and 2006
 2006 and 2005.
 Service charge expenses
   Administrative expenses
  Year ended December 31,2007 without2006 without 2006
    
    
    
    
    
    
    20062005
    
    
    2006
    
    
    acquisitions
    
    
    2007
    
    
    acquisitions(in thousands of pesos)Personnel expenses
    
    
    254,821
    
    
    
    396,338
    
    
    
    327,729
    
    
    
    589,021
    
    
    
    401,756Directors and statutory auditors fees
    
    
    14,142
    
    
    
    14,362
    
    
    
    13,167
    
    
    
    37,695
    
    
    
    33,909Other professional fees
    
    
    26,104
    
    
    
    39,670
    
    
    
    37,215
    
    
    
    42,428
    
    
    
    36,331Advertising and publicity
    
    
    22,668
    
    
    
    31,866
    
    
    
    29,719
    
    
    
    50,343
    
    
    
    45,634Taxes
    
    
    5,808
    
    
    
    9,008
    
    
    
    6,802
    
    
    
    13,491
    
    
    
    7,156Depreciation of equipment
    
    
    19,218
    
    
    
    29,231
    
    
    
    23,735
    
    
    
    42,723
    
    
    
    32,074Amortization of organization costs
    
    
    12,588
    
    
    
    13,263
    
    
    
    12,290
    
    
    
    17,923
    
    
    
    15,553Maintenance, conservation and repair expenses
    
    
    17,649
    
    
    
    25,209
    
    
    
    21,881
    
    
    
    36,930
    
    
    
    26,801Security services
    
    
    16,366
    
    
    
    25,003
    
    
    
    20,855
    
    
    
    35,487
    
    
    
    24,748Electric power and communications
    
    
    17,164
    
    
    
    22,912
    
    
    
    18,091
    
    
    
    32,206
    
    
    
    19,317Lease payments
    
    
    9,889
    
    
    
    14,123
    
    
    
    12,127
    
    
    
    18,686
    
    
    
    14,391Insurance
    
    
    3,973
    
    
    
    5,253
    
    
    
    4,663
    
    
    
    6,110
    
    
    
    4,857Stationery and office supplies
    
    
    7,979
    
    
    
    9,046
    
    
    
    7,900
    
    
    
    14,739
    
    
    
    10,477Other
    
    
    14,657
    
    
    
    17,173
    
    
    
    16,202
    
    
    
    19,261
    
    
    
    17,450Total administrative expenses
    
    
    443,026
    
    
    
    652,457
    
    
    
    552,376
    
    
    
    957,043
    
    
    
    690,454
 2007 and 2006
 2006 and 2005.
  68




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##### Table of Contents



Net other income
   Income tax
   B. Liquidity and Capital Resources
           69




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##### Table of Contents



Minimum capital requirements
  As of December 31,2005
    
    
    2006
    
    
    2007(in thousands of pesos, exceptratios and percentages)Calculation of excess capital:Allocated to assets at risk
    
    
    251,394
    
    
    
    549,882
    
    
    
    749,855Allocated to Bank premises and equipment, intangible assets and
equity investment assets
    
    
    64,247
    
    
    
    81,647
    
    
    
    95,729Market risk(1)
    
    
    21,011
    
    
    
    60,547
    
    
    
    127,445Interest rate risk
    
    
    15,136
    
    
    
    16,371
    
    
    
    102,343Government sector and securities in investment account
    
    
    14,296
    
    
    
    19,746
    
    
    
    38,609Incremental requirement
    
    
    
    
    
    
    13,328
    
    
    
    36.202Required minimum capital under Central Bank Rules
    
    
    366,084
    
    
    
    741,521
    
    
    
    1,150,183Basic net worth
    
    
    1,226,908
    
    
    
    2,426,351
    
    
    
    2,697,416Complementary net worth
    
    
    243,124
    
    
    
    383,040
    
    
    
    461,405Deductions
    
    
    21,638
    
    
    
    (153,115
    )
    
    
    (189,145
    )Total capital under Central Bank Rules
    
    
    1,491,670
    
    
    
    2,656,276
    
    
    
    2,969,676Excess capital
    
    
    1,125,586
    
    
    
    1,914,755
    
    
    
    1,819,493Selected capital and liquidity ratios:Regulatory capital/risk weighted assets
    
    
    31.03
    %
    
    
    31.31
    %
    
    
    26.81
    %Average shareholders equity as a percentage of average total assets
    
    
    14.25
    %
    
    
    16.24
    %
    
    
    13.87
    %Total liabilities as a multiple of total stockholders equity
    
    
    5.37
    x
    
    
    5.27
    x
    
    
    6.31
    xCash as a percentage of total deposits
    
    
    18.11
    %
    
    
    26.08
    %
    
    
    22.94
    %Liquid assets as a percentage of total deposits(2)
    
    
    58.65
    %
    
    
    61.92
    %
    
    
    52.01
    %Loans as a percentage of total assets
    
    
    36.12
    %
    
    
    45.00
    %
    
    
    50.60
    %
 (1)
    
    Average variance for December.(2)
    
    Liquid assets include cash, LEBACs, NOBACs, and interbanking loans. Since 2004, we include
overnight loans to highly rated companies.  Funding
  As of December 312005(1)
    
    
    2006(1)
    
    
    2007(in thousands of pesos)DepositsFrom the non-financial government sector
    
    
    822,687
    
    
    
    1,295,630
    
    
    
    1,774,121From the financial sector
    
    
    5,208
    
    
    
    5,078
    
    
    
    13,310From the non-financial private sector and foreign residentsChecking accounts
    
    
    1,036,175
    
    
    
    1,876,232
    
    
    
    2,599,682Savings accounts
    
    
    1,100,633
    
    
    
    2,097,362
    
    
    
    2,780,350Time deposits
    
    
    3,222,011
    
    
    
    4,380,981
    
    
    
    5,907,005Investment accounts(2)
    
    
    29,826
    
    
    
    18,836
    
    
    
    63,063Other(3)(4)
    
    
    292,767
    
    
    
    360,195
    
    
    
    391,176Accrued interest, adjustments and foreign exchange
differences payable
    
    
    56,019
    
    
    
    36,703
    
    
    
    62,442Borrowing from Central Bank and financial institutionsCentral Bank (5)
    
    
    217,511
    
    
    
    386,089
    
    
    
    347,896Banks and international institutions
    
    
    158,544
    
    
    
    182,405
    
    
    
    164,829Financing received from Argentine financial institutions
    
    
    42,259
    
    
    
    68,158
    
    
    
    160,296Other
    
    
    186,371
    
    
    
    250,096
    
    
    
    493,912Minority interest in subsidiaries
    
    
    
    
    
    
    78,045
    
    
    
    12,640Corporate Bonds
    
    
    
    
    
    
    
    
    
    
    799,537Subordinated Corporate Bonds
    
    
    12,047
    
    
    
    507,844
    
    
    
    490,695Shareholders equity
    
    
    1,489,652
    
    
    
    2,315,097
    
    
    
    2,707,706Total funding
    
    
    8,671,710
    
    
    
    13,858,751
    
    
    
    18,768,660
 (1)
    
    See note 4.2. to our audited consolidated financial statements for the year ended December
31, 2007.(2)
    
    Time deposit payable at the option of the depositor.(3)
    
    As of December 31, 2005, deposits include Ps.88.1 million, for CEDROs.(4)
    
    Primarily includes CEDROs, expired time deposits, and judicial deposits.(5)
    
    For 2005 represents amounts borrowed by Nuevo Banco Suquía from the Central Bank to purchase
bonds to deliver to depositors in exchange for their CEDROs. For 2006 also includes amounts
attributable to Nuevo Banco Bisel.  70




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##### Table of Contents



Critical accounting policies
   Loan loss reserve
         Credit card loans
  Impaired loansnon-financial private sector and foreign residents
   71




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##### Table of Contents



Interest recognitionnon-accrual loans
   Certain assets receivable from the government sector
   Guaranteed loans
  Secured bonds
        Income tax
   72
    Table of Contents         Business combination
       C. Research and Development, Patents and Licenses, Etc.
  D. Trend Information
   73




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##### Table of Contents




    
    The use of bank services by state and private employees and retirees through the opening
of savings accounts.
    
    Granting of personal loans to state and private employees and retirees.
    
    The delivery of limited-risk credit cards as a result of diversification and the
automatic debit of the minimum account payment.
    
    Marketing of other types of services, such as insurance, interbank transfers, service
payments, etc.
  
    
    Creating an excellent source of resources with very low volatility and costs.
    
    Expanding the portfolio related to loans distributed among a significant number of
people, the risk in this type of financing being relatively low.
    
    Applying the markets lowest rates in personal loans and credit cards, thus enabling the
systematic growth of loan stock.
    
    Fixing strategic agreements with companies to allow the bank to place commercial loans
in companies with profitable projects and growth prospects, and providing new individuals
accounts simultaneously to allow them to receive their salaries.
   E. Off-Balance Sheet Arrangements
   F. Contractual Obligations
  Payments due by periodLess than
    
    
    
    
    
    
    
    
    
    
    AfterTotal
    
    
    1 year
    
    
    13 years
    
    
    35 years
    
    
    5 years(in thousands of pesos)Contractual obligationsCentral Bank
    
    
    347,896
    
    
    
    72,526
    
    
    
    137,417
    
    
    
    137,419
    
    
    
    534Banks and international institutions
    
    
    164,829
    
    
    
    7,279
    
    
    
    157,550
    
    
    
    
    
    
    
    Corporate Bonds
    
    
    799,537
    
    
    
    18,947
    
    
    
    
    
    
    
    307,940
    
    
    
    472,650Financing received from Argentine financial institutions
    
    
    160,296
    
    
    
    119,038
    
    
    
    5,865
    
    
    
    7,280
    
    
    
    28,113Other
    
    
    493,912
    
    
    
    412,161
    
    
    
    7,280
    
    
    
    3,104
    
    
    
    71,367Subordinated corporate bonds
    
    
    490,695
    
    
    
    16,404
    
    
    
    1,641
    
    
    
    
    
    
    
    472,650Total contractual obligations
    
    
    2,457,165
    
    
    
    646,355
    
    
    
    309,753
    
    
    
    455,743
    
    
    
    1,045,314Commercial commitmentsLines of credit
    
    
    35,842
    
    
    
    35,842
    
    
    
    
    
    
    
    
    
    
    
    Guarantees
    
    
    337,825
    
    
    
    125,117
    
    
    
    101,528
    
    
    
    90,172
    
    
    
    21,008Standby letters of credit
    
    
    95,565
    
    
    
    94,537
    
    
    
    247
    
    
    
    781
    
    
    
    Total commercial commitments
    
    
    469,232
    
    
    
    255,496
    
    
    
    101,775
    
    
    
    90,953
    
    
    
    21,008
  74




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##### Table of Contents



Item 6. Directors, Senior Management and Employees
 A. Directors and Senior Management
  DUTIES AND LIABILITIES OF DIRECTORS
   BOARD OF DIRECTORS
  Year ofYear First
    
    
    Expiration ofName
    
    Position
    
    Age
    
    
    Appointed
    
    
    TermJorge Horacio Brito
    
    Chairman
    
    
    55
    
    
    
    2002
    
    
    
    2008Delfín Jorge Ezequiel Carballo
    
    Vice Chairman
    
    
    55
    
    
    
    2002
    
    
    
    2008Jorge Pablo Brito
    
    Director
    
    
    28
    
    
    
    2002
    
    
    
    2008Juan Pablo Brito Devoto
    
    Director
    
    
    47
    
    
    
    2002
    
    
    
    2007
    (1)Roberto Julio Eilbaum
    
    Director
    
    
    63
    
    
    
    2002
    
    
    
    2007
    (1)Luis Carlos Cerolini
    
    Director
    
    
    53
    
    
    
    2002
    
    
    
    2007
    (1)Carlos Enrique Videla
    
    Director
    
    
    62
    
    
    
    2002
    
    
    
    2009Alejandro Macfarlane
    
    Director
    
    
    42
    
    
    
    2005
    
    
    
    2009Guillermo Eduardo Stanley
    
    Director
    
    
    59
    
    
    
    2006
    
    
    
    2009Constanza Brito
    
    Director
    
    
    26
    
    
    
    2007
    
    
    
    2009Mario Eduardo Bartolomé
    
    Alternate director
    
    
    62
    
    
    
    2004
    
    
    
    2008Ernesto Eduardo Medina
    
    Alternate director
    
    
    40
    
    
    
    2002
    
    
    
    2008Marcos Brito
    
    Alternate director
    
    
    25
    
    
    
    2007
    
    
    
    2008Fernando Raúl García Pulles
    
    Alternate director
    
    
    52
    
    
    
    2007
    
    
    
    2008
 (1)
    
    Re-elected by the
Ordinary and Extraordinary Shareholders Meeting held on April 29, 2008.  75




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##### Table of Contents



SENIOR MANAGEMENT
   Year FirstNames
    
    Position
    
    Age
    
    
    AppointedJorge Horacio Brito
    
    Chief Executive Officer
    
    
    55
    
    
    
    2002Delfín Jorge Ezequiel Carballo
    
    Chief Financial Officer
    
    
    55
    
    
    
    2002Juan Pablo Brito Devoto
    
    Chief Accounting Officer
    
    
    48
    
    
    
    2002Jorge Pablo Brito
    
    Coordinator of the Executive Committee
    
    
    28
    
    
    
    2006Guillermo Goldberg
    
    Deputy general manager
    
    
    50
    
    
    
    2005Jorge Francisco Scarinci
    
    Financial and Investor relations manager
    
    
    37
    
    
    
    2006Ana María Magdalena Marcet
    
    Credit risk manager
    
    
    46
    
    
    
    2002Miguel Gurfinkiel
    
    Government portfolio manager
    
    
    57
    
    
    
    2006Horacio Sistac
    
    Corporate banking manager
    
    
    51
    
    
    
    2005María Begoña Pérez de Solay
    
    Retail banking manager
    
    
    36
    
    
    
    2002Brian Anthony
    
    Branch network manager
    
    
    34
    
    
    
    2005Eduardo Roque Covello
    
    Operations manager
    
    
    50
    
    
    
    2006Máximo Eduardo Lanusse
    
    Administration manager
    
    
    34
    
    
    
    2007Daniel Hugo Violatti
    
    Accountancy and Tax manager
    
    
    44
    
    
    
    2003Constanza Brito
    
    Human Resources manager
    
    
    26
    
    
    
    2005Carmen Esther Estévez
    
    Internal audit manager
    
    
    50
    
    
    
    2002Francisco Martín Sguera
    
    Legal manager
    
    
    35
    
    
    
    2005Milagro Medrano
    
    Institutional relations manager
    
    
    31
    
    
    
    2002
  Asociación de Bancos Argentinos ADEBA) Nuevo Banco Bisel, Banco del
Tucumán, Sud Inversiones y Análisis S.A. Macro Securities S.A. Sociedad de Bolsa Inversora
Juramento S.A.
 NuevoBanco Bisel, Banco del Tucumán, Sud Inversiones y Análisis S.A. Macro Securities S.A.
Sociedad de Bolsa Inversora Juramento S.A.
 Macro Warrants S.A.,
Macro Valores S.A and Red Innova Administradora de Fondos S.A. Nuevo Banco
Bisel, Banco del Tucumán Sud Inversions y Análisis S.A. Macro Securities S.A. Sociedad de Bolsa Inversora Juramento S.A.
 Macro Bank LTD. Macro Valores S.A.. Nuevo Banco Bisel, Banco del Tucumán, Sud Inversiones y
Análisis S.A and Red Innova Administradora de Fondos S.A.
 Nuevo Banco Bisel Banco del Tucumán.
  76




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##### Table of Contents



Provincanje S.A. Nuevo Banco Bisel Banco
del Tucumán, Sud Inversiones y Análisis S.A.,Macro Securities S.A. Sociedad de Bolsa, Macro
Warrants S.A., Macro Valores S.A. ACH S.A. Cámara Compensadora Electrónica.
 Nuevo Banco Bisel.
 Empresa Distribuidora y Comercializadora Norte or Edenor
S.A.
 Havanna S.A.
 Banco del Tucumán.
  Nuevo Banco Bisel Mercado Abierto Electrónico S.A. or MAE
 Nuevo Banco Bisel
 Estudio García Pulles-Calatrava & Asociados Estudio OFarrell
          77




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##### Table of Contents



B. Compensation
    C. Board Practices
 Corporate Governance
  Independence of the Members of the Board of Directors and the Supervisory Committee
   78




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##### Table of Contents



Supervisory Committee
 sociedad anónima
   Year of
    
    CurrentName
    
    Position
    
    Age
    
    Appointment
    
    Term EndsLadislao Szekely
    
    Syndic
    
    54
    
    2007
    
    April 2008Santiago Marcelo Maidana
    
    Syndic
    
    77
    
    2007
    
    April 2008Herman Fernando Aner
    
    Syndic
    
    53
    
    2007
    
    April 2008Alejandro Almarza
    
    Alternate syndic
    
    49
    
    2007
    
    April 2008Horacio Della Rocca
    
    Alternate syndic
    
    54
    
    2007
    
    April 2008Alejandro Carlos Piazza
    
    Alternate syndic
    
    53
    
    2007
    
    April 2008
   Nuevo Banco Bisel Macro Valores S.A. Macro Securities S.A. Sociedad de Bolsa Sud
Inversiones y Análisis S.A.
 Nuevo
Banco Bisel Macro Valores S.A. Macro Securities S.A. Sociedad de Bolsa Sud Inversiones y
Análisis S.A.
 Nuevo Banco Bisel Macro Valores S.A., Banco del Tucumán Macro Securities S.A.
Sociedad de Bolsa Sud Inversiones y Análisis S.A.
 of Macro Fondos S.A. Sociedad Gerente de Fondos Comunes de Inversión S.A. Macro Warrants
S.A. Nuevo Banco Bisel Macro Valores S.A., Banco del Tucumán Macro
Securities S.A. Sociedad de Bolsa Sud Inversiones y Análisis S.A.
 of Macro Fondos S.A. Sociedad Gerente de Fondos Comunes de
Inversión S.A. Nuevo Banco Bisel Macro Valores S.A., Macro Warrants
S.A., Banco del Tucumán Macro Securities S.A. Sociedad de Bolsa Sud Inversiones y Análisis
S.A..
 of Macro Fondos S.A. Sociedad Gerente
de Fondos Comunes de Inversión S.A. Nuevo Banco Bisel, Macro
Securities S.A. Sociedad de Bolsa Macro Valores S.A. Sud Inversiones y Análisis S.A.
  79




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##### Table of Contents



Audit Committee
     Year ofName
    
    Position
    
    Age
    
    Appointment
    
    StatusCarlos Enrique Videla
    
    Chairman
    
    62
    
    2007
    
    IndependentAlejandro Macfarlane
    
    Vice Chairman
    
    42
    
    2007
    
    IndependentGuillermo Eduardo Stanley
    
    Member
    
    59
    
    2007
    
    IndependentFernando Raúl García Pulles
    
    Alternate Member
    
    52
    
    2007
    
    Independent
 Committees Reporting to the Board of Directors and to the CEO and the CFO
  Internal audit committee.
  Name
    
    PositionJuan Pablo Brito Devoto
    
    DirectorJorge Pablo Brito
    
    DirectorCarlos Enrique Videla
    
    Director (Independent)Carmen Estévez
    
    Internal audit manager
 Systems and technology.
  Name
    
    PositionJorge Pablo Brito
    
    DirectorJuan Pablo Brito Devoto
    
    Chief Accounting OfficerGuillermo Goldberg
    
    Deputy general managerErnesto Eduardo Medina
    
    Deputy general managerEduardo Roque Covello
    
    Operations managerBrian Anthony
    
    Branch network managerMilagro Medrano
    
    Institutional relations managerDaniel Hugo Violatti
    
    Accountancy and Tax manager
  80




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Senior credit committee.
 Name
    
    PositionJorge Horacio Brito
    
    ChairmanDelfín Jorge Ezequiel Carballo
    
    Vice ChairmanJorge Pablo Brito
    
    DirectorAna M. Marcet
    
    Coordinator of the Senior Credit Committee
 Executive committee
  Name
    
    PositionJorge Horacio Brito
    
    ChairmanDelfín Jorge Ezequiel Carballo
    
    Vice ChairmanJorge Pablo Brito
    
    Director
 D. Employees
  As of December 31,Employees
    
    2005
    
    
    2006
    
    
    2007Headquarters
    
    
    1,782
    
    
    
    2,553
    
    
    
    2,713Branches
    
    
    3,272
    
    
    
    5,032
    
    
    
    5,155Total
    
    
    5,054
    
    
    
    7,585
    (1)
    
    
    7,868
 (1)
    
    Includes 2,474 from Banco del Tucumán and Nuevo Banco Bisel E. Share Ownership
   Percentage ofNumber of
    
    
    Percentage of
    
    
    VotingShareholder Name
    
    shares owned
    
    
    capital stock (%)
    
    
    rights (%)Jorge Horacio Brito
    
    
    124,250,014
    
    
    
    18.17
    %
    
    
    19.95
    %Delfín Jorge Ezequiel Carballo
    
    
    111,910,112
    
    
    
    16.36
    %
    
    
    18.04
    %Juan Pablo Brito Devoto
    
    
    6,691,999
    
    
    
    0.98
    %
    
    
    1.07
    %Luis Carlos Cerolini
    
    
    179,900
    
    
    
    0.03
    %
    
    
    0.02
    %Alejandro Macfarlane
    
    
    170,000
    
    
    
    0.02
    %
    
    
    0.02
    %Carlos Enrique Videla
    
    
    92,249
    
    
    
    0.01
    %
    
    
    0.01
    %Marcos Brito
    
    
    50,000
    
    
    
    0.00
    %
    
    
    0.00
    %Total
    
    
    243,344,274
    
    
    
    35.57
    %
    
    
    39.11
    %
  81




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##### Table of Contents



Number of
    
    
    Percentage of
    
    
    Percentage ofShareholder Name
    
    shares owned
    
    

capital stock (%)
    
    

Voting rights (%)Jorge Horacio Brito
    
    
    124,520,643
    
    
    
    18.21
    %
    
    
    19.99
    %Delfín Jorge Ezequiel Carballo
    
    
    112,178,725
    
    
    
    16.40
    %
    
    
    18.08
    %Juan Pablo Brito Devoto
    
    
    6,691,999
    
    
    
    0.98
    %
    
    
    1.07
    %Luis Carlos Cerolini
    
    
    179,900
    
    
    
    0.03
    %
    
    
    0.02
    %Alejandro Macfarlane
    
    
    255,000
    
    
    
    0.04
    %
    
    
    0.03
    %Carlos Enrique Videla
    
    
    105,249
    
    
    
    0.02
    %
    
    
    0.02
    %Jorge Pablo Brito
    
    
    83,256
    
    
    
    0.01
    %
    
    
    0.01
    %Marcos Brito
    
    
    15,233
    
    
    
    0.00
    %
    
    
    0.00
    %Total
    
    
    244,030,005
    
    
    
    35.69
    %
    
    
    39.22
    %
 
 Item 7. Major Shareholders and Related Party Transactions
 A. Major Shareholders
   Number of
    
    
    Number ofClass A
    
    
    Class B shares
    
    
    
    
    
    
    Percentage of
    
    
    Percentage ofShareholder Name
    
    shares owned
    
    
    owned
    
    
    Total
    
    

capital stock (%)
    
    

Voting rights (%)Jorge Horacio Brito
    
    
    5,292,143
    
    
    
    118,957,871
    
    
    
    124,250,014
    
    
    
    18.17
    %
    
    
    19.95
    %Delfín Jorge Ezequiel Carballo
    
    
    4,895,416
    
    
    
    107,014,696
    
    
    
    111,910,112
    
    
    
    16.36
    %
    
    
    18.04
    %Other Shareholders
    
    
    1,048,111
    
    
    
    446,735,200
    
    
    
    447,783,311
    
    
    
    65.47
    %
    
    
    62.01
    %Total
    
    
    11,235,670
    
    
    
    672,707,767
    
    
    
    683,943,437
    
    
    
    100.00
    %
    
    
    100.00
    %
   Number of
    
    
    Number ofClass A
    
    
    Class B shares
    
    
    
    
    
    
    Percentage of
    
    
    Percentage ofShareholder Name
    
    shares owned
    
    
    owned
    
    
    Total
    
    

capital stock (%)
    
    

Voting rights (%)Jorge Horacio Brito
    
    
    5,292,143
    
    
    
    119,228,500
    
    
    
    124,520,643
    
    
    
    18.21
    %
    
    
    19.99
    %Delfín Jorge Ezequiel Carballo
    
    
    4,895,416
    
    
    
    107,283,309
    
    
    
    112,178,725
    
    
    
    16.40
    %
    
    
    18.08
    %Other Shareholders
    
    
    1,048,111
    
    
    
    446,231,494
    
    
    
    447,279,605
    
    
    
    65.39
    %
    
    
    61.93
    %Total
    
    
    11,235,670
    
    
    
    672,743,303
    
    
    
    683,978,973
    
    
    
    100.00
    %
    
    
    100.00
    %
  82




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##### Table of Contents



Date
    
    Capital Stock (Ps.)
    
    
    Event
    
    Controlling ShareholdersJune 30, 2002
    
    
    64,410,357
    
    
    Capital increase
    
    Banco Macro S.A. 59.58%January 31, 2003
    
    
    455,242,646
    
    
    Capitalization of irrevocable capital contributions
    
    Banco Macro S.A. 81.23%December 31, 2003
    
    
    608,943,437
    
    
    Merger with Banco Macro
S.A.
    
    Jorge H. Brito 30.93%Delfín Jorge Ezequiel Carballo 25.73%Fernando Andrés Sansuste 11.75%Juan Pablo Brito Devoto 2.12%March 23, 2006
    
    
    683,943,437
    
    
    Capital Increase
    
    Jorge H. Brito 18.9%Delfín Jorge Ezequiel Carballo 16.7%Fernando Andrés Sansuste 7.6%Juan Pablo Brito Devoto 1.3%May 12, 2006
    
    
    683,943,437
    
    
    Transference of shares
    
    Jorge H. Brito 21.64 %Delfín Jorge Ezequiel Carballo 19.56%Juan Pablo Brito Devoto 1.27%May 31, 2007
    
    
    683,943,437
    
    
    Transference of shares
    
    Jorge H. Brito 18.87% (1)Delfín Jorge Ezequiel Carballo 16.80% (1)Juan Pablo Brito Devoto 0.10% (1)February 29, 2008
    
    
    683,978,973
    
    
    Capital Increase (2)
    
    Jorge H. Brito 18.17%Delfín Jorge Ezequiel Carballo 16.37%Juan Pablo Brito Devoto 0.98%
 (1)
    
    Monthly movements mainly from November 2006.(2)
    
    On June 4 and June 5, 2007, Shareholders Meetings for Banco Macro S.A. and Nuevo Banco Suquía
S.A., respectively, resolved to authorize the merger of the two entities and increase the capital
stock of Banco Macro S.A. from Ps.683,943,437 to Ps.683,978,973, issuing 35,536 Class B ordinary
shares with a Ps. 1.00 par value and one vote per share, to be granted to the minority shareholders
of Nuevo Banco Suquía S.A. as a result of the merger. Although this capital increase was authorized
in 2007, the new shares were issued on February 12, 2008. B. Related Party Transactions
       C. Interest of experts and counsel
   83




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##### Table of Contents



Item 8. Financial Information
 A. Consolidated Statements and Other Financial Information
  Legal Proceedings
  Dividend
Policy
 pari passu
  AggregateDividendPaymentBased on financial statements for year ended
    
    
    
    
    
    Dividends per Share
    
    
    (in millions ofDecember 31,
    
    Payment Dates
    
    
    (in pesos)
    
    
    pesos)2003
    
    July 2004
    
    
    0.10
    
    
    
    60.92004
    
    April 2005
    
    
    0.05
    
    
    
    30.42005
    
    May 2006
    
    
    0.10
    
    
    
    68.42006
    
    May 2007
    
    
    0.15
    
    
    
    102.62007
    
    May 2008
    
    
    0.25
    
    
    
    171.0
 Central Bank and contractual limitations on distribution of dividends
    (i)
    
    we are subject to a liquidation procedure or the mandatory transfer of assets by the Central
Bank in accordance with section 34 or 35 bis of the Financial Institutions Law;(ii)
    
    we are receiving financial assistance from the Central Bank (except liquidity assistance
under the pesification rules pursuant to Decree No. 739/2003);(iii)
    
    we are not in compliance with or have failed to comply on a timely basis with our reporting
obligations to the Central Bank; or(iv)
    
    we are not in compliance with minimum capital requirements (both on an individual and
consolidated basis) or with minimum cash reserves (on average).
    84




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Amounts available for distribution and distribution approval process
     Legal reserve requirement
  B. Significant Changes
  
 Item 9. The Offer and Listing
 A. Offer and listing details
  Ps. per Class B ShareBanco Macro
    
    High
    
    
    Low2008:January
    
    
    7.75
    
    
    
    6.70February
    
    
    7.85
    
    
    
    7.10March
    
    
    8.16
    
    
    
    7.20April
    
    
    8.46
    
    
    
    7.26May
    
    
    7.40
    
    
    
    6.152007:1st quarter
    
    
    12.30
    
    
    
    8.952nd quarter
    
    
    11.75
    
    
    
    9.803rd quarter
    
    
    10.70
    
    
    
    7.294th quarter
    
    
    10.15
    
    
    
    7.20December
    
    
    8.20
    
    
    
    7.202006:1st quarter
    
    
    7.00
    
    
    
    5.322nd quarter
    
    
    7.37
    
    
    
    5.753rd quarter
    
    
    6.65
    
    
    
    5.724th quarter
    
    
    9.51
    
    
    
    6.602005:1st quarter
    
    
    4.35
    
    
    
    3.472nd quarter
    
    
    4.28
    
    
    
    3.583rd quarter
    
    
    5.31
    
    
    
    3.604th quarter
    
    
    5.45
    
    
    
    4.65
 Source: Buenos Aires Stock Exchange Bulletin.  85




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##### Table of Contents



Ps. per ShareBanco Macro
    
    High
    
    
    Low2003:1st quarter
    
    
    17.20
    
    
    
    16.002nd quarter
    
    
    28.70
    
    
    
    20.003rd quarter
    
    
    30.50
    
    
    
    26.004th quarter
    
    
    41.30
    
    
    
    30.002002:1st quarter
    
    
    
    
    
    
    2nd quarter
    
    
    4.10
    
    
    
    3.403rd quarter
    
    
    
    
    
    
    4th quarter
    
    
    17.60
    
    
    
    10.002001:1st quarter
    
    
    4.25
    
    
    
    4.502nd quarter
    
    
    4.00
    
    
    
    4.003rd quarter
    
    
    4.00
    
    
    
    3.404th quarter
    
    
    3.40
    
    
    
    3.40
 Source: Buenos Aires Stock Exchange Bulletin.  Banco Bansud
 Ps. per Class B ShareBanco Bansud
    
    High
    
    
    Low2003:1st quarter
    
    
    1.65
    
    
    
    1.042nd quarter
    
    
    2.20
    
    
    
    1.453rd quarter
    
    
    2.16
    
    
    
    1.804th quarter
    
    
    2.99
    
    
    
    2.052002:1st quarter
    
    
    0.70
    
    
    
    0.332nd quarter
    
    
    0.55
    
    
    
    0.303rd quarter
    
    
    1.06
    
    
    
    0.464th quarter
    
    
    1.74
    
    
    
    0.902001:1st quarter
    
    
    1.74
    
    
    
    0.902nd quarter
    
    
    1.31
    
    
    
    0.803rd quarter
    
    
    1.07
    
    
    
    0.304th quarter
    
    
    0.54
    
    
    
    0.30
 Source: Buenos Aires Stock Exchange Bulletin.  86




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##### Table of Contents



US$. per ADSBanco Macro
    
    High
    
    
    Low2008:January
    
    
    24.77
    
    
    
    20.86February
    
    
    24.95
    
    
    
    21.82March
    
    
    25.99
    
    
    
    22.10April
    
    
    26.67
    
    
    
    22.40May
    
    
    23.20
    
    
    
    18.402007:1st quarter
    
    
    39.11
    
    
    
    29.302nd quarter
    
    
    39.00
    
    
    
    31.983rd quarter
    
    
    34.82
    
    
    
    22.404th quarter
    
    
    31.92
    
    
    
    22.75December
    
    
    26.20
    
    
    
    22.752006:1st quarter
    
    
    23.35
    
    
    
    21.602nd quarter
    
    
    24.69
    
    
    
    18.703rd quarter
    
    
    21.50
    
    
    
    18.354th quarter
    
    
    31.96
    
    
    
    21.35
 Source: Reuters B. Plan of Distribution
  C. Markets
   D. Selling Shareholders
  E. Dilution
  F. Expenses of the issue
   87




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##### Table of Contents



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




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##### Table of Contents



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




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##### Table of Contents



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




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##### Table of Contents



Exchange Rates(1)High
    
    
    Low
    
    
    Average(2)
    
    
    Period-end2002
    
    
    3.8675
    
    
    
    1.0000
    
    
    
    2.9785
    
    
    
    3.36302003
    
    
    3.3625
    
    
    
    2.7485
    
    
    
    2.9493
    
    
    
    2.93302004
    
    
    3.0718
    
    
    
    2.8037
    
    
    
    2.9424
    
    
    
    2.97382005
    
    
    3.0523
    
    
    
    2.8592
    
    
    
    2.9230
    
    
    
    3.03152006
    
    
    3.1072
    
    
    
    3.0305
    
    
    
    3.0741
    
    
    
    3.06952007
    
    
    3.1797
    
    
    
    3.0553
    
    
    
    3.1156
    
    
    
    3.1510December 2007
    
    
    3.1510
    
    
    
    3.1318
    
    
    
    3.1397
    
    
    
    3.1510January 2008
    
    
    3.1575
    
    
    
    3.1282
    
    
    
    3.1444
    
    
    
    3.1557February 2008
    
    
    3.1695
    
    
    
    3.1505
    
    
    
    3.1583
    
    
    
    3.1587March 2008
    
    
    3.1688
    
    
    
    3.1448
    
    
    
    3.1558
    
    
    
    3.1653April 2008
    
    
    3.1845
    
    
    
    3.1520
    
    
    
    3.1643
    
    
    
    3.1635May 2008
    
    
    3.1812
    
    
    
    3.0978
    
    
    
    3.1511
    
    
    
    3.09782008 through May 2008
    
    
    3.1845
    
    
    
    3.0978
    
    
    
    3.1554
    
    
    
    3.0978
 (1)
    
    Until June 2002, asked closing quotations as quoted by Banco de la Nación Argentina. Since July
2002, the reference exchange rate as published by the Central Bank.(2)
    
    Based on daily closing price. Exchange controls
         91




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##### Table of Contents



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




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




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94




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
    
    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.
 valor
patrimonial proporcional
     95




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##### Table of Contents



F. Dividends and Paying Agents
  G. Statement by Experts
  H. Documents on Display
    
    
    our annual reports; and
 
    
    summaries of all notices of general meetings of shareholders and other reports and
communications that are made generally available to our shareholders.
  I. Subsidiary Information
  
 Item 11. Quantitative and Qualitative Disclosure About Market Risk
 Market Risk
      96




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2007Minimum
    
    
    70.5Maximum
    
    
    134.5Average
    
    
    95.3December 2007
    
    
    127.4
  Interest Rate Risk
      2007Minimum
    
    
    5.9Maximum
    
    
    102.3Average
    
    
    28.1December 2007
    
    
    101.1
 Foreign Exchange Risk
  2007Minimum
    
    
    2.8Maximum
    
    
    5.4Average
    
    
    4.1December 2007
    
    
    5.0
 Equity and Commodity Price Risk
  
 Item 12. Description of Securities Other Than Equity Securities
   97




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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; and
 c)
    
    Provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Banks assets that could have a material effect on
the financial statements.
     98




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Attestation Report of the Independent Registered Public Accounting Firm
  REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
         
 
 Changes in Internal Control Over Financial Reporting
   99




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##### Table of Contents



Item 16A. Audit Committee Financial Expert
  
 Item 16B. Code of Ethics
  
 Item 16C. Principal Accountant Fees and Services
 Fees Paid to the Companys Principal Accountant
  For the year ended December 31,Thousands of Pesos
    
    2006
    
    
    2007Audit Fees
    
    
    6,681
    
    
    
    7,074Audit Related Fees
    
    
    550
    
    
    
    1,733All Other Fees
    
    
    228
    
    
    
    127Total
    
    
    7,459
    
    
    
    8,934
 Audit Fees
  Audit-Related Fees
  All Other Fees
 .
 Audit Committees Pre-approval Policies and Procedures
   100




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##### Table of Contents



Item 16D. Exemptions from the Listing Standards for Audit Committees
  
 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
 Total
    
    
    
    
    
    
    
    
    
    
    maximum number ofnumber of
    
    
    Average
    
    
    Total number of
    
    
    shares/Pesos that may yet beshares
    
    
    Price paid
    
    
    shares purchased as
    
    
    purchased under the programPeriod
    
    purchased
    
    
    per share
    
    
    part of the program
    
    
    in Shares
    
    
    in $1: January 8  February 7 (1)
    
    
    291,432
    
    
    
    6.871
    
    
    
    291,432
    
    
    
    29,708,568
    
    
    
    207,997,5882: February 8  March 7 (1)
    
    
    1,148,000
    
    
    
    6.939
    
    
    
    1,439,432
    
    
    
    28,560,568
    
    
    
    200,034,3713: March 8  April 7 (1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4: April 8  May 7 (1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5: May 8  June 7 (2)(3)(4)
    
    
    3,908,527
    
    
    
    6.766
    
    
    
    5,347,959
    
    
    
    24,652,041
    
    
    
    174,018,7876: June 8
 June 27(3)(4)(5)
    
    
    9,004,153
    
    
    
    6.151
    
    
    
    14,352,112
    
    
    
    15,647,888
    
    
    
    118,781,341TOTAL
    
    
    14,352,112
    
    
    
    6.682
    
    
    
    14,352,112
    
    
    
    15,647,888
    
    
    
    118,781,341
 1.
    
    On January 8, 2008 the Board of Directors of the Bank decided to establish the
following terms and conditions for the acquisition of its own shares issued by the Bank
under the provisions of Section 68 of Law 17,811 (added by Decree number 677/2001) and the
Rules of the CNV: (a) maximum amount of the investment: Up to Ps. 210,000,000; (b) maximum
number of shares to be acquired: Up to 30,000,000 common, book entry, Class B shares with a
par value of Ps$. 1 (one Peso) each and entitled to 1 (one) vote per share, (the Shares),
in the form of shares or American Depositary Shares or ADS representing 10 shares each,
which amount does not exceed the limitation of the 10% of the capital of the Bank, as
established by the applicable Argentine laws and regulations; (c) payable price: Between
Ps. 6.50 per share and up to Ps. 7.00 per share, and (d) term for the acquisition: 120
calendar days from the date of publication of the relevant information in the Bulletin of
the Buenos Aires Stock Exchange, subject to any renewal or extension to be duly informed to
the public in such Bulletin.2.
    
    On May 8, 2008 the Board of Directors of the Bank decided to extend the term for the
acquisition of certain shares issued by the Bank for 30 additional calendar days.3.
    
    On May 14, 2008 the Board of Directors of the Bank decided to amend the price range of
certain shares issued by the Bank, fixing such range between Ps. 6.00 per share and up to
Ps$. 7.00 per share.4.
    
    On June 6, 2008 the Board decided to extend the term until July 6, 2008.5.
    
    Since June 25, 2008 the abovementioned price ranges was fixed between Ps. 5.00 per
share and up to Ps$. 7.00 per share.  
 PART III
 
 Item 17. Financial Statements
  
 Item 18. Financial Statements
   101




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Item 19. Exhibits
 EXHIBIT INDEX
 ExhibitNumber
    
    Description1.1
    
    
    Amended and Restated Bylaws of Banco Macro S.A., as amended April 28, 2006, is incorporated by
reference to the annual report on Form 20-f filed on July 13, 2007 (File No. 001-32-827).2.1
    
    
    Deposit Agreement among the registrant, The Bank of New York, as depositary, and the holders from
time to time of American depositary shares issued thereunder, including the form of American
depositary receipts, incorporated by reference to the Registration Statement on Form F-1, as
amended, filed by Banco Macro S.A. on March 20, 2006 (File No. 333-130901).8
    
    
    See Note 4.1 to our financial statements for information regarding our subsidiaries.12.1
    *
    
    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.12.2
    *
    
    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.13.1
    *
    
    Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.13.2
    *
    
    Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 *
    
    Filed herein  102




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SIGNATURE
  BANCO MACRO S.A.By:
    /s/ Jorge Horacio BritoName:
    Jorge Horacio BritoTitle:
    Chief Executive Officer   103




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##### Table of Contents



CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE THREE YEARS ENDED DECEMBER 31, 2007,
TOGETHER WITH THE REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
  F - 1




---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 BANCO MACRO S.A.
      
 
 
  F - 2




---



##### Table of Contents



Report of Independent Registered Public Accounting Firm To the Shareholders’ and 
the Board of Directors of Nuevo
Banco Bisel S.A. We have audited the accompanying balance sheet of Nuevo Banco Bisel S.A.
(the “Bank”) as of December 31, 2006, and the related statements of income, of changes in
shareholders’ equity and of cash flows for the 143 days period from August 11, 2006 through
December 31, 2006. These financial statements are the responsibility of the Bank’s management. Our
responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Nuevo Banco Bisel S.A. at December 31, 2006 and the results of
their operations and their cash flows for the period from August 11, 2006 through December 31, 2006, in
conformity with Argentine Central Bank (“BCRA”) accounting rules. As described in Note 31 to the financial statements, BCRA accounting rules
differ in certain significant respects from, and is a comprehensive basis of accounting other than, accounting
principles generally accepted in the United States of America (“US GAAP”). Information relating to the
nature and effect of the differences between BCRA accounting rules and US GAAP is presented in Note 31 to the financial
statements. Price Waterhouse & Co. S.R.L. 
Marcelo Trama 
Partner Buenos Aires, Argentina 
July 11, 2007. Note: The financial statements of Nuevo Banco Bisel S.A. referred to in the
report above have not been included in this 20-F.  F - 3




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2007 AND 2006
 2007
    
    
    2006 (1)ASSETSCASHCash on hand
    
    
    790,869
    
    
    
    564,191Due from banks and correspondentsCentral Bank of Argentina
    
    
    2,022,463
    
    
    
    1,551,399Local Others
    
    
    4,262
    
    
    
    13,777Foreign
    
    
    299,647
    
    
    
    497,433Other
    
    
    185
    
    
    
    1083,117,426
    
    
    
    2,626,908GOVERNMENT AND PRIVATE SECURITIESHoldings for trading or financial intermediation
    
    
    358,413
    
    
    
    304,065Instruments issued by the Central Bank of Argentina
    
    
    3,478,246
    
    
    
    2,787,019Unlisted government securities
    
    
    20,137
    
    
    
    13,441Investments in listed private securities
    
    
    93,956
    
    
    
    118,459Less: Allowances
    
    
    (27
    )
    
    
    (29
    )3,950,725
    
    
    
    3,222,955LOANSTo the non-financial government sector
    
    
    732,481
    
    
    
    774,273To the financial sectorInterfinancing
    
    
    65,789
    
    
    
    395,000Other financing to Argentine financial institutions
    
    
    94,496
    
    
    
    39,065Accrued interest, adjustments, foreign exchange and
quoted price differences receivables
    
    
    1,417
    
    
    
    2,865To the non-financial private sector and foreign residentsOverdrafts
    
    
    1,504,657
    
    
    
    1,103,270Documents
    
    
    1,081,675
    
    
    
    543,734Mortgage loans
    
    
    619,781
    
    
    
    426,138Pledged loans
    
    
    347,989
    
    
    
    300,949Personal loans
    
    
    3,207,547
    
    
    
    1,431,105Credit cards
    
    
    722,032
    
    
    
    497,872Other
    
    
    1,718,978
    
    
    
    1,131,315Accrued interest, adjustments, foreign exchange and
quoted price differences receivables
    
    
    153,902
    
    
    
    101,744Less: Unposted payments
    
    
    (69
    )
    
    
    (139
    )Less: Unearned discount
    
    
    (20,836
    )
    
    
    (11,505
    )Less: Allowances
    
    
    (220,422
    )
    
    
    (208,581
    )10,009,417
    
    
    
    6,527,105
 (1)
    
    See note 4.2.  F - 4




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2007 AND 2006
 2007
    
    
    2006 (1)OTHER RECEIVABLES FROM FINANCIAL INTERMEDIATIONCentral Bank of Argentina
    
    
    191,475
    
    
    
    119,954Amounts receivable from spot and forward sales pending settlement
    
    
    428,581
    
    
    
    213,605Securities and foreign currency receivable from spot and forward
purchases pending settlement
    
    
    149,275
    
    
    
    140,717Premiums on options taken
    
    
    
    
    
    
    868Unlisted corporate bonds
    
    
    44,257
    
    
    
    12,661Other receivables not covered by debtors classification standards
    
    
    549,677
    
    
    
    557,870Receivables from forward transactions without delivery of
underlying asset
    
    
    
    
    
    
    110Other receivables covered by debtors classification standards
    
    
    69,969
    
    
    
    47,108Less: Allowances
    
    
    (206,939
    )
    
    
    (178,319
    )1,226,295
    
    
    
    914,574ASSETS SUBJECT TO FINANCIAL LEASESAssets subject to financial leases
    
    
    372,866
    
    
    
    282,129Less: Allowances
    
    
    (4,898
    )
    
    
    (3,489
    )367,968
    
    
    
    278,640INVESTMENTS IN OTHER COMPANIESIn financial institutions
    
    
    439
    
    
    
    429Other
    
    
    10,669
    
    
    
    11,116Less: Allowances
    
    
    (697
    )
    
    
    (1,172
    )10,411
    
    
    
    10,373OTHER RECEIVABLESReceivables from sale of assets
    
    
    26,074
    
    
    
    26,330Minimum presumed income tax  Tax credit
    
    
    45,293
    
    
    
    47,780Other
    
    
    209,345
    
    
    
    155,038Accrued interest and adjustments receivable from sale of assets
    
    
    544
    
    
    
    302Other accrued interest and adjustments receivable
    
    
    58
    
    
    
    66Less: Allowances
    
    
    (27,034
    )
    
    
    (36,153
    )254,280
    
    
    
    193,363BANK PREMISES AND EQUIPMENT, NET
    
    
    373,111
    
    
    
    336,251OTHER ASSETS
    
    
    206,580
    
    
    
    202,765INTANGIBLE ASSETSGoodwill
    
    
    71,916
    
    
    
    81,164Organization and development costs, including amparos
    
    
    191,061
    
    
    
    110,015262,977
    
    
    
    191,179ITEMS PENDING ALLOCATION
    
    
    2,056
    
    
    
    859TOTAL ASSETS
    
    
    19,781,246
    
    
    
    14,504,972
 (1)
    
    See note 4.2.  F - 5




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2007 AND 2006
 2007
    
    
    2006 (1)LIABILITIESDEPOSITSFrom the non-financial government sector
    
    
    1,774,121
    
    
    
    1,295,630From the financial sector
    
    
    13,310
    
    
    
    5,078From the non-financial private sector and foreign residentsChecking accounts
    
    
    2,599,682
    
    
    
    1,876,232Savings accounts
    
    
    2,780,350
    
    
    
    2,097,362Time deposits
    
    
    5,907,005
    
    
    
    4,380,981Investment accounts
    
    
    63,063
    
    
    
    18,836Other
    
    
    391,176
    
    
    
    360,195Accrued interest, adjustments, foreign exchange and quoted
price differences payables
    
    
    62,442
    
    
    
    36,70313,591,149
    
    
    
    10,071,017OTHER LIABILITIES FROM FINANCIAL INTERMEDIATIONCentral Bank of Argentina  Other
    
    
    347,896
    
    
    
    386,089Banks and international institutions
    
    
    160,939
    
    
    
    176,687Non-subordinated Corporate Bonds
    
    
    780,590Amounts payable for spot and forward purchases pending settlement
    
    
    158,765
    
    
    
    132,434Securities and foreign currency to be delivered under spot and
forward sales pending settlement
    
    
    445,799
    
    
    
    217,066Premiums on options sold
    
    
    2
    
    
    
    868Financing received from Argentine financial institutionsInterfinancing  (received call)
    
    
    46,000
    
    
    
    25,000Other financing received from Argentine financial institutions
    
    
    90,806
    
    
    
    22,982Accrued interest payables
    
    
    53
    
    
    
    23Other
    
    
    492,799
    
    
    
    250,091Accrued interest, adjustments, foreign exchange and quoted price
differences payables
    
    
    47,387
    
    
    
    25,8762,571,036
    
    
    
    1,237,116OTHER LIABILITIESDividends payables
    
    
    1
    
    
    
    662Profesional fees
    
    
    732
    
    
    
    9Other
    
    
    241,296
    
    
    
    188,260242,029
    
    
    
    188,931PROVISIONS
    
    
    164,347
    
    
    
    104,870SUBORDINATED CORPORATE BONDS
    
    
    490,695
    
    
    
    507,844ITEMS PENDING ALLOCATION
    
    
    1,644
    
    
    
    2,052MINORITY INTEREST IN SUBSIDIARIES
    
    
    12,640
    
    
    
    78,045TOTAL LIABILITIES
    
    
    17,073,540
    
    
    
    12,189,875SHAREHOLDERS EQUITY
    
    
    2,707,706
    
    
    
    2,315,097TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    
    19,781,246
    
    
    
    14,504,972
 (1)
    
    See note 4.2. 
  F - 6




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2007 AND 2006
 MEMORANDUM ACCOUNTS
 2007
    
    
    2006 (1)DEBIT-BALANCE ACCOUNTSContingent- Guarantees received
    
    
    3,229,071
    
    
    
    2,718,097- Other not covered by debtors classification
standards
    
    
    524
    
    
    
    459- Contingent debit-balance contra accounts
    
    
    469,232
    
    
    
    567,9813,698,827
    
    
    
    3,286,537Control- Receivables classified as uncollectibility
    
    
    832,822
    
    
    
    879,769- Other (see note 11.2)
    
    
    4,931,358
    
    
    
    5,028,310- Control debit-balance contra accounts
    
    
    183,684
    
    
    
    133,0445,947,864
    
    
    
    6,041,123Derivatives- Notional value of call options taken
    
    
    
    
    
    
    159,804- Notional value of put options taken
    
    
    
    
    
    
    50,649- Notional value of forward transactions without
delivery of underlying asset
    
    
    331,411
    
    
    
    - Interest rate swap
    
    
    36,238
    
    
    
    - Derivatives debit-balance contra accounts
    
    
    209,196
    
    
    
    364,322576,845
    
    
    
    574,775Trust activity- Trust funds (see note 13.)
    
    
    574,302
    
    
    
    430,735574,302
    
    
    
    430,735TOTAL
    
    
    10,797,838
    
    
    
    10,333,170
 (1)
    
    See note 4.2.  F - 7




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2007 AND 2006
 MEMORANDUM ACCOUNTS
 2007
    
    
    2006 (1)CREDIT-BALANCE ACCOUNTSContingent- Unused portion of loans granted covered by debtors
classification standards
    
    
    
    
    
    
    (9,120
    )- Guarantees provided to the Central Bank of
Argentina
    
    
    (163,122
    )
    
    
    (180,908
    )- Other guarantees provided covered by debtors
classification standards
    
    
    (115,930
    )
    
    
    (243,057
    )- Other guarantees provided not covered by debtors
classification standards
    
    
    (58,773
    )
    
    
    (43,289
    )- Other covered by debtors classification standards
    
    
    (131,407
    )
    
    
    (91,607
    )- Contingent credit-balance contra accounts
    
    
    (3,229,595
    )
    
    
    (2,718,556
    )(3,698,827
    )
    
    
    (3,286,537
    )Control- Checks to be credited
    
    
    (183,684
    )
    
    
    (133,044
    )- Control credit-balance contra accounts
    
    
    (5,764,180
    )
    
    
    (5,908,079
    )(5,947,864
    )
    
    
    (6,041,123
    )Derivatives- Notional value of call options sold
    
    
    (549
    )
    
    
    (91,071
    )- Notional value of put options sold
    
    
    (113,809
    )
    
    
    (245,675
    )- Notional value of forward transactions without
delivery of underlying asset
    
    
    (94,838
    )
    
    
    (27,576
    )- Derivatives credit-balance contra accounts
    
    
    (367,649
    )
    
    
    (210,453
    )(576,845
    )
    
    
    (574,775
    )Trust activity- Trust activity credit-balance contra accounts
    
    
    (574,302
    )
    
    
    (430,735
    )(574,302
    )
    
    
    (430,735
    )TOTAL
    
    
    (10,797,838
    )
    
    
    (10,333,170
    )
 (1)
    
    See note 4.2. 
  F - 8




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
 2007
    
    
    2006 (1)
    
    
    2005 (1)FINANCIAL INCOMEInterest on cash
    
    
    19,917
    
    
    
    11,682
    
    
    
    4,080Interest on loans to the financial sector
    
    
    32,157
    
    
    
    16,720
    
    
    
    5,320Interest on overdrafts
    
    
    192,599
    
    
    
    120,040
    
    
    
    53,953Interest on documents
    
    
    139,102
    
    
    
    56,988
    
    
    
    32,157Interest on mortgage loans
    
    
    68,065
    
    
    
    48,506
    
    
    
    29,655Interest on pledged loans
    
    
    51,480
    
    
    
    43,038
    
    
    
    26,160Interest on credit card loans
    
    
    55,665
    
    
    
    30,969
    
    
    
    18,233Interest on other loans
    
    
    527,954
    
    
    
    259,801
    
    
    
    121,062Interest on other receivables from financial
intermediation
    
    
    18,471
    
    
    
    15,050
    
    
    
    19,901Income from government and private securities, net
    
    
    488,757
    
    
    
    324,178
    
    
    
    156,158Income from
guaranteed loans  Presidential Decree
No. 1,387/01
    
    
    35,043
    
    
    
    29,898
    
    
    
    28,625Net income from options
    
    
    1,604
    
    
    
    
    
    
    
    CER (Benchmark Stabilization Coefficient) adjustment
    
    
    78,065
    
    
    
    84,951
    
    
    
    185,421CVS (Salary Variation Coefficient) adjustment
    
    
    1,605
    
    
    
    1,947
    
    
    
    1,987Difference in quoted prices of gold and foreign
currency
    
    
    48,823
    
    
    
    40,007
    
    
    
    31,392Other
    
    
    131,115
    
    
    
    71,432
    
    
    
    35,4791,890,422
    
    
    
    1,155,207
    
    
    
    749,583FINANCIAL EXPENSEInterest on checking accounts
    
    
    19,968
    
    
    
    9,475
    
    
    
    2,647Interest on savings accounts
    
    
    11,372
    
    
    
    6,736
    
    
    
    4,302Interest on time deposits
    
    
    457,395
    
    
    
    233,697
    
    
    
    106,486Interest on interfinancing received loans (received
call)
    
    
    4,608
    
    
    
    801
    
    
    
    980Interest on other financing to financial institutions
    
    
    226
    
    
    
    252
    
    
    
    43Interest on other liabilities from financial
intermediation
    
    
    70,706
    
    
    
    14,421
    
    
    
    13,796Interest on subordinated bonds
    
    
    49,858
    
    
    
    2,017
    
    
    
    1,806Other interest
    
    
    9,768
    
    
    
    12,410
    
    
    
    11,482Net loss from options
    
    
    
    
    
    
    371
    
    
    
    1,017CER adjustment
    
    
    43,717
    
    
    
    55,732
    
    
    
    117,048Contribution to Deposit Guarantee Fund
    
    
    20,182
    
    
    
    12,753
    
    
    
    9,701Other
    
    
    117,465
    
    
    
    46,232
    
    
    
    33,601805,265
    
    
    
    394,897
    
    
    
    302,909GROSS INTERMEDIATION MARGIN  GAIN
    
    
    1,085,157
    
    
    
    760,310
    
    
    
    446,674PROVISION FOR LOAN LOSSES
    
    
    94,717
    
    
    
    59,773
    
    
    
    70,309SERVICE-CHARGE INCOMERelated to lending transactions
    
    
    53,995
    
    
    
    35,964
    
    
    
    19,175Related to deposits
    
    
    422,589
    
    
    
    273,976
    
    
    
    181,961Other fees
    
    
    21,687
    
    
    
    19,567
    
    
    
    12,866Other
    
    
    164,055
    
    
    
    122,725
    
    
    
    88,756662,326
    
    
    
    452,232
    
    
    
    302,758
 (1)
    
    See note 4.2.  F - 9




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
 2007
    
    
    2006 (1)
    
    
    2005 (1)SERVICE-CHARGE EXPENSEFees
    
    
    49,965
    
    
    
    34,499
    
    
    
    23,061Other
    
    
    100,317
    
    
    
    58,824
    
    
    
    36,449150,282
    
    
    
    93,323
    
    
    
    59,510ADMINISTRATIVE EXPENSESPersonnel expenses
    
    
    589,021
    
    
    
    396,338
    
    
    
    254,821Directors  and statutory auditors fees
    
    
    37,695
    
    
    
    14,362
    
    
    
    14,142Other professional fees
    
    
    42,428
    
    
    
    39,670
    
    
    
    26,104Advertising and publicity
    
    
    50,343
    
    
    
    31,866
    
    
    
    22,668Taxes
    
    
    13,491
    
    
    
    9,008
    
    
    
    5,808Depreciation of equipment
    
    
    42,723
    
    
    
    29,231
    
    
    
    19,218Amortization of organization costs
    
    
    17,923
    
    
    
    13,263
    
    
    
    12,588Other operating expenses
    
    
    144,158
    
    
    
    101,546
    
    
    
    73,020Other
    
    
    19,261
    
    
    
    17,173
    
    
    
    14,657957,043
    
    
    
    652,457
    
    
    
    443,026NET INCOME FROM FINANCIAL INTERMEDIATION
    
    
    545,441
    
    
    
    406,989
    
    
    
    176,587OTHER INCOMEIncome from long-term investments
    
    
    890
    
    
    
    289
    
    
    
    2,724Penalty interest
    
    
    7,580
    
    
    
    5,553
    
    
    
    3,167Recovered loans and allowances reversed
    
    
    133,118
    
    
    
    192,508
    
    
    
    168,064CER adjustment
    
    
    194
    
    
    
    283
    
    
    
    191Other
    
    
    41,743
    
    
    
    36,174
    
    
    
    44,738183,525
    
    
    
    234,807
    
    
    
    218,884OTHER EXPENSEPenalty interest and charges payable to
the Central Bank of Argentina
    
    
    64
    
    
    
    38
    
    
    
    33Charge for other-receivables
uncollectibility and other allowances
    
    
    15,599
    
    
    
    26,713
    
    
    
    39,177CER adjustment
    
    
    
    
    
    
    
    
    
    
    3Amortization of differences from amparos
    
    
    29,279
    
    
    
    19,477
    
    
    
    14,100Depreciation and loss of other assets
    
    
    5,303
    
    
    
    3,567
    
    
    
    3,737Goodwill amortization
    
    
    9,250
    
    
    
    4,766
    
    
    
    839Other
    
    
    79,843
    
    
    
    82,756
    
    
    
    40,794139,338
    
    
    
    137,317
    
    
    
    98,683MINORITY INTEREST IN SUBSIDIARIES
    
    
    (2,083
    )
    
    
    (3,178
    )
    
    
    INCOME BEFORE INCOME TAX
    
    
    587,545
    
    
    
    501,301
    
    
    
    296,788INCOME TAX
    
    
    92,345
    
    
    
    76,961
    
    
    
    34,042NET INCOME FOR THE FISCAL YEAR
    
    
    495,200
    
    
    
    424,340
    
    
    
    262,746NET INCOME PER SHARE (2)  stated in
pesos
    
    
    0.72
    
    
    
    0.64
    
    
    
    0.43
 (1)
    
    See note 4.2.(2)
    
    See note 9. 
  F - 10




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
 FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
 Adjustments
    
    
    Earnings reservedCapital
    
    
    Stock
    
    
    to
    
    
    
    
    
    
    Specialstock
    
    
    issuance
    
    
    shareholders
    
    
    
    
    
    
    Corporate
    
    
    
    
    
    
    UnappropriatedChanges
    
    (1)
    
    
    premium
    
    
    equity
    
    
    Legal
    
    
    Bonds
    
    
    Voluntary
    
    
    earnings
    
    
    TotalBalances as of December 31, 2004
    
    
    608,943
    
    
    
    
    
    
    
    4,511
    
    
    
    222,109
    
    
    
    
    
    
    
    211
    
    
    
    421,528
    
    
    
    1,257,302Merger of Nuevo Banco Suquía
S.A.:- Balance of Nuevo Banco
Suquía S.A. at the beginning
of the fiscal year
    
    
    303,750
    
    
    
    
    
    
    
    (23
    )
    
    
    13,264
    
    
    
    
    
    
    
    
    
    
    
    (9,693
    )
    
    
    307,298- Merger effects (2)
    
    
    (303,714
    )
    
    
    84
    
    
    
    23
    
    
    
    (13,264
    )
    
    
    
    
    
    
    
    
    
    
    9,624
    
    
    
    (307,247
    )Distribution of unappropriated
retained earnings approved by
the Shareholders Meeting held
on April, 28 2005:- Legal reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23,193
    
    
    
    
    
    
    
    
    
    
    
    (23,193
    )- Cash dividends (3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (30,447
    )
    
    
    (30,447
    )Net income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    262,746
    
    
    
    262,746Balances as of December 31, 2005
    
    
    608,979
    
    
    
    84
    
    
    
    4,511
    
    
    
    245,302
    
    
    
    
    
    
    
    211
    
    
    
    630,565
    
    
    
    1,489,652Distribution of unappropriated
retained earnings approved by the Shareholders Meeting held on April, 28, 2006:- Legal reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    52,543
    
    
    
    
    
    
    
    
    
    
    
    (52,543
    )- Cash dividends (3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (68,395
    )
    
    
    (68,395
    )Share subscription approved by
Shareholders Meeting held on September 26, 2005 (1)
    
    
    75,000
    
    
    
    394,500
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    469,500Net income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    424,340
    
    
    
    424,340Balances as of December 31, 2006
    
    
    683,979
    
    
    
    394,584
    
    
    
    4,511
    
    
    
    297,845
    
    
    
    
    
    
    
    211
    
    
    
    933,967
    
    
    
    2,315,097
  F - 11




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
 FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
 Adjustments
    
    
    Earnings reservedCapital
    
    
    Stock
    
    
    to
    
    
    
    
    
    
    Specialstock
    
    
    issuance
    
    
    shareholders
    
    
    
    
    
    
    Corporate
    
    
    
    
    
    
    UnappropriatedChanges
    
    (1)
    
    
    premium
    
    
    equity
    
    
    Legal
    
    
    Bonds
    
    
    Voluntary
    
    
    earnings
    
    
    TotalDistribution of unappropriated
earnings, as approved by the
Shareholders Meeting held on
April, 26, 2007 and April, 28,
2006, respectively:- Legal reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    84,860
    
    
    
    
    
    
    
    
    
    
    
    (84,860
    )
    
    
    - Cash dividends (3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (102,591
    )
    
    
    (102,591
    )- Special reserve  Corporate
Bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    45,515
    
    
    
    
    
    
    
    (45,515
    )- Reversal of Special Reserve 
Corporate Bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (45,515
    )
    
    
    
    
    
    
    45,515Net income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    495,200
    
    
    
    495,200Balances as of December 31, 2007
    
    
    683,979
    
    
    
    394,584
    
    
    
    4,511
    
    
    
    382,705
    
    
    
    
    
    
    
    211
    
    
    
    1,241,716
    
    
    
    2,707,706
 (1)
    
    See note 9.(2)
    
    See notes 3.5. and 4.2.(3)
    
    Through resolutions of April 18, 2005, April 21, 2006 and April 16, 2007, respectively, the
Central Bank authorized the above mentioned cash dividends distribution. 
  F - 12




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 FOR THE YEAR ENDED DECEMBER 31, 2007 (see note 4.4.s))
 Changes in cash and cash equivalentsCash and cash equivalents at beginning of fiscal year
    
    
    2,626,908Cash and cash equivalents at end of fiscal year
    
    
    3,117,426Net increase in cash and cash equivalents
    
    
    490,518Causes of changes in cash and cash equivalentsOperating activitiesNet collections / (payments):- Government and private securities
    
    
    (68,837
    )- Loans- to the financial sector
    
    
    310,024- to the non-finacial government sector
    
    
    36,674- to the non-finacial private sector and foreign residents
    
    
    (2,687,238
    )- Other receivables from financial intermediation
    
    
    (509,249
    )- Assets under financial lease
    
    
    (31,295
    )- Deposits- to the financial sector
    
    
    8,232- to the non-finacial government sector
    
    
    473,453- to the non-finacial private sector and foreign residents
    
    
    2,614,398- Other liabilities from financial intermediation- financing facilities from the financial sector
    
    
    (3,320
    )- others (except liabilities included under financing activities)
    
    
    278,226Collections related to service-change income
    
    
    658,863Payments related to service-charge expenses
    
    
    (146,606
    )Administrative expenses paid
    
    
    (873,034
    )Payments of organization and development expenses
    
    
    (57,438
    )Net collections from punitive interest
    
    
    7,569Differences from payments related to court orders
    
    
    (34,445
    )Collections of dividends from other companies
    
    
    636Other collections related to other income and losses
    
    
    15,679Net payments from other operating activities
    
    
    (14,711
    )Payment of income tax / minimum presumed income tax
    
    
    (80,183
    )Net cash flows used in operating activities
    
    
    (102,602
    )Investing activitiesNet payments for bank premises and equipment
    
    
    (77,661
    )Net payments for other assets
    
    
    (1,559
    )Collections from sales of investments in other companies
    
    
    33Other payments for investing activities
    
    
    (1,678
    )Net cash flows used in investing activities
    
    
    (80,865
    )Financing activitiesNet collections / (payments):- Non-subordinated corporate bonds
    
    
    749,464- Central Bank of Argentina- Other
    
    
    (53,681
    )- Banks and International Organizations
    
    
    (15,844
    )- Subordinated corporate bonds
    
    
    (13,240
    )- Financing received from financial institutions in Argentina
    
    
    82,885Irrevocable capital
    
    
    182Payment of dividends
    
    
    (102,591
    )Other collections from financing activities
    
    
    (3,230
    )Net cash flows provided by financing activities
    
    
    643,945Financial income and holding gains on cash and cash equivalents
    
    
    30,040Net increase in cash and cash equivalents
    
    
    490,518
  F - 13




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##### Table of Contents



(Contd.)
 BANCO MACRO S.A. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005 (see note 4.4.s))
 2006 (1)
    
    
    2005 (1)Cash provided by (used in) operating activitiesFinancial income collected
    
    
    1,181,118
    
    
    
    792,872Service-charge income collected
    
    
    452,627
    
    
    
    302,738Other sources of cash (2)
    
    
    560,562
    
    
    
    44,298Less:Financial expenses paid
    
    
    (410,354
    )
    
    
    (284,936
    )Services-charge expenses paid
    
    
    (92,069
    )
    
    
    (59,193
    )Administrative expenses paid
    
    
    (599,435
    )
    
    
    (406,821
    )Other uses of cash
    
    
    (158,906
    )
    
    
    (27,998
    )Net cash provided by operating activities
    
    
    933,543
    
    
    
    360,960Plus:Cash provided by (used in) investing activitiesDecrease / (increase) in government and private
securities
    
    
    628,496
    
    
    
    (706,893
    )Increase in loans
    
    
    (2,052,258
    )
    
    
    (573,255
    )Decrease in other receivables from financial
intermediation
    
    
    646,052
    
    
    
    529,526Increase in other assets
    
    
    (394,844
    )
    
    
    (238,629
    )Net cash used in investing activities
    
    
    (1,172,554
    )
    
    
    (989,251
    )Plus:Cash provided by (used in) financing activitiesIncrease in deposits
    
    
    1,541,983
    
    
    
    1,252,599Increase / (decrease) in other liabilities (3)
    
    
    520,492
    
    
    
    (1,667
    )Decrease in other liabilities from financial
intermediation
    
    
    (786,790
    )
    
    
    (775,326
    )Capital increase
    
    
    469,500
    
    
    
    Cash dividends paid
    
    
    (68,395
    )
    
    
    (30,447
    )Net cash provided by financing activities
    
    
    1,676,790
    
    
    
    445,159Increase / (Decrease) in cash and cash equivalents
    
    
    1,437,779
    
    
    
    (183,132
    )Cash and cash equivalents at the beginning of fiscal
year
    
    
    1,189,129
    
    
    
    1,372,261Cash and cash equivalents at the end of the fiscal year
    
    
    2,626,908
    
    
    
    1,189,129
 (1)
    
    See note 4.2.(2)
    
    As of December 31, 2006, includes 150,190 related to Banco del Tucumán S.A. (see note
3.6.) and 261,787 related to Nuevo Banco Bisel S.A. (see note 3.7.). As of December 31,
2005, includes 40,838 related to the acquisition of certain assets and liabilities of Banco
Empresario de Tucumán Cooperativo Limitado.(3)
    
    Including the effect deriving from the issuance of Subordinated Corporate Bonds
mentioned in note 10.c.1). 
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 AS OF DECEMBER 31, 2007 AND 2006
  1.
    
    OVERVIEW OF THE BANKMacro Compañía Financiera S.A. was created in 1977 as a non-banking financial institution. In
May 1988, it received the authorization to operate as a commercial bank and it was incorporated
as Banco Macro S.A.Banco Macro S.A.s shares have been publicly listed on the Buenos Aires Stock Exchange since
November 1994 (see also note 9).As from 1994, Banco Macro S.A.s market was mainly focused on the regional areas outside the
City of Buenos Aires. Following this strategy, in 1996, Banco Macro S.A. began the process of
acquiring entities and assets and liabilities during the privatization of provincial banks and
other banks.On December 19, 2001, Banco Macro S.A. entered into an agreement to acquire 59.58% of the
capital stock and 76.17% of the voting rights in Banco Bansud S.A. The acquisition was
effective January 4, 2002, once it was approved by the Central Bank of Argentina.During 2003, the shareholders decided to merge both entities with the strategic purpose of
creating a financial institution based throughout Argentina. In December 2003, the Central Bank
authorized the merger between Banco Macro S.A. and Banco Bansud S.A., and the Bank name changed
to Banco Macro Bansud S.A.On December 22, 2004, Banco Macro Bansud S.A. received 100% of the shares in Nuevo Banco Suquía
S.A. awarded in the Second Public Call for Bids for the Sale of Shares in Nuevo Banco Suquía
S.A. owned by BNA (Banco de la Nación Argentina) and Fundación BNA.Since March 24, 2006, Banco Macro Bansud S.A.s stock has been listed on the New York Stock
Exchange (see additionally note 9.).On April 28, 2006, Banco Macro Bansud S.A.s General Regular and Special Shareholders Meeting
approved the amendment to the Banks business name to Banco Macro S.A., the registration of
which with the IGJ (Argentine business associations regulatory agency) occurred in August
2006. Therefore, we will refer to it as Banco Macro S.A. or the Bank.Additionally, in 2006, Banco Macro S.A. acquired: (i) 79.84% of the capital stock of Banco del
Tucumán S.A., totaling 89.93% of this capital stock during fiscal year 2007 (see note 3.6);
(ii) 100% of the common shares of Nuevo Banco Bisel S.A. (see note 3.7); and (iii) 51% of the
capital stock of Red Innova Administradora de Fondos de Inversión S.A. (see note 3.9).
Furthermore, on May 28, 2007, the Bank acquired 100% of the preferred shares of Nuevo Banco
Bisel S.A. (see note 3.7).In 2007, the shareholders of Banco Macro S.A. and Nuevo Banco Suquía S.A. decided to merge both
entities to integrate their structure given the similarities in their activities and business,
so as to achieve greater efficiency. In August 2007, the Central Bank authorized this merger,
which took place on October 16, 2007 (see note 3.5).The Bank currently offers traditional bank products and services to companies, including those
operating in regional economies, as well as to medium- and low-income individuals.In addition, the Bank performs certain transactions through its subsidiaries, including mainly
Banco del Tucumán S.A., Nuevo Banco Bisel S.A., Macro Bank Limited (an entity organized under
the laws of Bahamas, former Sud Bank & Trust Company Limited), Macro Securities S.A. Sociedad
de Bolsa, Sud Inversiones & Análisis S.A. and Macro Fondos S.G.F.C.I. S.A.The chart showing the organizational structure as of December 31, 2007 is disclosed in note 4.1
with the percentages indicating the ownership in each subsidiary.
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2.
    
    CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT AND THE SITUATIONS OF THE FINANCIAL SYSTEM
AND THE BANKThe Argentine economic and financial situation worsened in late 2001, when the Argentine
government suspended payments on the sovereign debt and imposed severe restrictions on cash
withdrawals from financial institutions.In early 2002, the Argentine Congress enacted Public Emergency and Foreign Exchange System
Reform Law No. 25,561 (the effective term of which was extended through December 31, 2008).
This law introduced significant changes to the economic model implemented until that date and
amended Convertibility Law (the currency board that pegged the Argentine peso at parity with
the US dollar) effective since March 1991. After a period of an official foreign exchange
market, a single foreign exchange market was established, subject to Central Bank requirements
and rules. Such law and subsequent presidential decrees established, among others, measures
that affected the financial system, primarily related to the conversion into pesos of its
assets and liabilities in foreign currency at different exchange rates and the related
compensatory measures.Also, the current administration outlined a program that included important measures such as
the exchange of federal and provincial government debt, compensation provided to Financial
Institutions for the effects of the devaluation and the conversion into pesos of balances
denominated in foreign currency, the restructuring of Federal Government debt, deposits
rescheduling and the lifting of restrictions thereto, relaxation of foreign-exchange controls
and monetary reunification with the redemption of quasi-currencies. In addition, during 2005,
the government debt restructuring process was completed and the Argentine Government settled
its payable to the International Monetary Fund. Also, the economic and financial variables
showed evolution and the financial system is undergoing a financial consolidation process.The accompanying consolidated financial statements should be read considering the circumstances
previously mentioned.Legal actionsThe measures adopted by the Federal Executive with respect to the public emergency in
political, economic, financial and foreign exchange matters triggered a number of legal actions
(known as recursos de amparo constitutional rights protection actions), brought by
individuals and companies against the Federal Government, the Central Bank and the financial
institutions for considering that the Public Emergency Law and its supplementary regulations are
unconstitutional.In the specific case of deposits denominated in foreign currency, in some cases, the courts
ordered the reimbursement of such deposits, either in foreign
currency or at the free foreign
exchange rate at the time of reimbursement until a final judgment is issued with respect to the
constitutionality of the conversion into pesos.Some of these claims were treated by the Argentine Supreme Court, which issued resolutions on
lower-court decisions for each particular case and in different manners.On December 27, 2006,
in the case in re. Massa Juan Agustín v. the Federal Government et al for
constitutional rights protection actions and in other later pronouncements, the Argentine
Supreme Court revoked prior instance judgments that ordered the reimbursement of deposits in US
dollars and resolved that depositors are entitled to the reimbursement of their deposits
converted into pesos at the Ps. 1.40-to-USD 1 exchange rate, adjusted by the CER through the
payment date, and interest should be applied to such amount at a 4% rate p.a., which may not be
compounded through the payment date. In addition, the judgment established that the amounts
paid by financial institutions in the course of the lawsuit should be computed as payments
towards the total resulting amount, which, ultimately, may not be higher than the US dollars
the client deposited with each bank, as decided at prior court instances, provided that such
judgment had not been appealed by the plaintiff. Also, each party would bear its own legal
costs, and the legal costs ruled at the first and second instances were confirmed.
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
     3.
    
    BANK OPERATIONS
 3.1.
    
    Agreement with the Misiones Provincial GovernmentThe Bank and the Misiones Provincial Government entered into a special-relationship
agreement whereby the Bank was appointed, for a term of five years as from January 1,
1996, as the Provincial Governments exclusive financial agent, as well as revenue
collection and obligation payment agent.In addition, on November 25, 1999, and on December 28, 2006, extensions to such agreement
were agreed upon, making it currently effective through December 31, 2019.As of December 31, 2007, and 2006, the deposits of the Misiones Provincial Government
amounted to 163,711 and 279,507 (including 35,248 and 29,516 related to court deposits),
respectively.3.2.
    
    Agreement with the Salta Provincial GovernmentThe Bank and the Salta Provincial Government entered into a special-relationship agreement
whereby the Bank was appointed, for a term of ten years as from March 1, 1996, as the
Provincial Governments exclusive financial agent, as well as revenue collection and
obligation payment agent.In addition, on
February 22, 2005, that agreement was extended through March 1, 2016.As of December 31, 2007, and 2006, the deposits of the Salta Provincial Government
amounted to 492,265 and 288,432 (including 53,681 and 53,876 related to court deposits),
respectively.
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BANCO MACRO S.A. AND SUBSIDIARIES
 3.3.
    
    Agreement with the Jujuy Provincial GovernmentThe Bank and the Jujuy Provincial Government entered into a special-relationship agreement
whereby the Bank was appointed, for a ten-year term as from January 12, 1998, as the
Provincial Governments exclusive financial agent, as well as revenue collection and
obligation payment agent.Additionally, on April 29, 2005, such agreement was extended through November 4, 2014.As of December 31, 2007, and 2006, the deposits of the Jujuy Provincial Government
amounted to 378,662 and 284,064 (including 32,206 and 32,179 related to court deposits),
respectively.3.4.
    
    Uniones Transitorias de Empresas (Joint ventures)
 a)
    
    Banco Macro S.A.  Siemens Itron Business Services S.A.The Bank participates in the Banco Macro S.A:  Siemens Itron  Unión Transitoria de
Empresas (a joint venture jointly controlled having an interest of 50%), under the
agreement entered into by the former Banco Macro S.A. and Siemens Itron Business
Services S.A. on April 7, 1998. The current subject-matter of the Unión Transitoria de
Empresas (joint venture) agreement is to provide a provincial data processing center to
manage tax-related assets, to modernize tax collection systems and procedures in the
province of Salta, and to manage and recover the tax and municipal assessment debt.As of December 31, 2007 and 2006, the net assets amounted to 2,922 and 3,515,
respectively, and net income of the joint venture amounted to 8,311 and 7,713,
respectively. Under Central Bank rules, this interest is consolidated through the
proportionate consolidation method (both net assets and income).b)
    
    Banco Macro Bansud S.A.  Montamat & Asociados S.R.L.On October 22, 2004, the Bank entered into a joint venture agreement named BMB M&A -
Unión Transitoria de Empresas (jointly controlled having an interest of 50%) with
Montamat & Asociados S.R.L. The subject-matter of such agreement will be to render
audit services related to oil & gas royalties and tax easements in the province of
Salta to optimize the collection thereof.As of December 31, 2007, and 2006, the net assets amounted to 5,313 and 1,150,
respectively, Also, as of December 31, 2007, the income booked for the Banks interest
in such joint venture amounted to 4,276, whereas as of December 31, 2006, it carried a
loss in the amount of 9. Under Central Bank rules, this interest is consolidated
through the proportional consolidation method (both net assets and loss).
 3.5.
    
    Legal Merger of Nuevo Banco Suquía S.A.On March 14, 2007, the Boards of Directors of Banco Macro S.A. and Nuevo Banco Suquía S.A.
entered into a Preliminary merger agreement, whereby Nuevo Banco Suquía S.A. will merge
with and into Banco Macro S.A. retroactively effective as from January 1, 2007, on the
basis of the financial statements of such banks as of December 31, 2006.On June 4 and 5, 2007, the General Regular and Special Shareholders Meetings of Banco
Macro S.A. and Nuevo Banco Suquía S.A., respectively, approved such preliminary merger
agreement, as well as the consolidated balance sheet for merger purposes as of December
31, 2006, and the shares exchange relationship.Furthermore, Banco Macro S.A.s Shareholders Meeting mentioned above approved the capital
stock increase of Ps. 683,943,437 to Ps. 683,978,973 through the issuance of 35,536 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.
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BANCO MACRO S.A. AND SUBSIDIARIES
    3.6.
    
    Banco del Tucumán S.A.In line with its strategy to increase its market position in the interior of Argentina, on
November 24, 2005, the Bank signed a stock purchase agreement with Banco Comafi S.A. for
75% of the capital stock and voting rights of Banco del Tucumán S.A. Such event was
approved by the Central Bank on March 6, 2006, through Board of Governors Resolution No.
50, as well as by the Technical Coordination Department of the Economy and Production
Ministry on April 7, 2006.In this regard, on May 5, 2006, the Bank acquired 164,850 class A shares in Banco del
Tucumán S.A., representing 75% of its capital stock, and on the same date took control
over such institution.The Bank paid 45,961 in cash for the acquisition. In addition, the Bank shall pay over to
Banco Comafi S.A. 75% of the amounts to be recovered in the ten years following the date
of the abovementioned agreement related to consumer loan portfolio currently fully
provisioned. As of the date of acquisition, such liabilities amounted to about 1,662 (as
of December 31, 2007, it amounted to 145). Consequently, the total acquisition price
amounted to 47,623.Under Central Bank rules, Banco del Tucumán S.A.s assets and liabilities as of May 5,
2006 amounted to:
 Cash
    
    
    150,190Government and private securities
    
    
    198,411Loans
    
    
    205,614Other receivables from financial intermediation
    
    
    93,227Assets subject to financial leases
    
    
    3,174Investments in other companies
    
    
    708Other receivables
    
    
    8,061Bank premises and equipment, net
    
    
    26,131Other assets
    
    
    820Intangible assets
    
    
    14,261Items pending allocation
    
    
    15Total assets
    
    
    700,612Deposits
    
    
    594,530Other liabilities from financial intermediation
    
    
    53,573Other liabilities
    
    
    11,364Provisions
    
    
    994Items pending allocation
    
    
    86Total liabilities
    
    
    660,547Total shareholders equity
    
    
    40,065Total liabilities and shareholders equity
    
    
    700,612
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Additionally, from September through December 2006, Banco Macro S.A. acquired Class C
 shares in Banco del Tucumán S.A., representing 4.84% of the capital stock, which gave rise
to an additional positive goodwill of 668. Thus, the total equity interest as of December
31, 2006, amounted to 79.84%.As of December 31, 2007, and 2006, the positive goodwill resulting from such acquisition
was booked under Intangible assets in the amount of 15,222 and 17,048, respectively (net
of amortizations for 3,021 and 1,194, respectively).Additionally, on November 28, 2006, the general regular and special Shareholders 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 and
paid in the total increase, thus increasing its overall interest in Banco del Tucumán S.A.
to 89.93% (9,709 was paid by the Bank in excess of its original equity interest).Additionally, according to the service agreement signed on August 15, 2001, Banco del
Tucumán S.A. will act as the exclusive financial agent of the Provincial Government until
2011. It also acts as the exclusive financial agent of the Municipality of San Miguel de
Tucumán.See additionally note 3.8. for pro forma information.3.7.
    
    Nuevo Banco Bisel S.A.On May 9, 2006, Banco de la Nacion Argentina (BNA) and Fundación Banco de la Nación
Argentina (sellers) and the Bank (buyer) signed a stock purchase agreement, whereby the
buyers acquired 100% of the voting common shares in Nuevo Banco Bisel S.A. representing
the same percentages of voting rights.In Addition, Nuevo Banco Bisel S.A. holds 66,240,000 preferred shares, with face value and
book value of Ps. 1 each, without voting rights, with an equity preference consisting of
the right to an mandatory annual cumulative fixed dividend of 1% of the face value of
preferred shares, which belonged to Seguro de Depósitos S.A. (SEDESA) as of the date of
acquisition.On August 3, 2006, the Central Banks Board of Governors issued Resolution No. 175,
whereby it decided, among other matters, not to make any objections to: (i) the transfer
of 100% of the common shares in Nuevo Banco Bisel S.A. to the buyers; and (ii) the payment
by the two of them of a capital increase in the amount of 830,000, under the terms of the
agreement signed on May 9, 2006.On September 4, 2006, the Domestic Trade Department of the Ministry of Economy and
Production, following the same terms of the opinion issued by the Federal Anti-Trust Board
on August 11, 2006, authorized the buyers to acquire the total shares of common stock
(92.73% of the total capital stock) of Nuevo Banco Bisel S.A.On August 11, 2006, the Bank paid up in cash the abovementioned capital increase in Nuevo
Banco Bisel S.A., thus taking controls of such bank as from such date.
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Under Central Bank rules, Nuevo Banco Bisel S.A.s assets and liabilities as of August 10,
2006 amounted to:
 Cash
    
    
    261,787Government and private securities
    
    
    503,720Loans
    
    
    874,128Other receivables from financial intermediation
    
    
    40,730Assets subject to financial leases
    
    
    30,925Investments in other companies
    
    
    1,338Other receivables
    
    
    19,869Bank premises and equipment, net
    
    
    59,885Other assets
    
    
    27,377Intangible assets
    
    
    4,743Items pending allocation
    
    
    142Total assets
    
    
    1,824,644Deposits
    
    
    1,392,676Other liabilities from financial intermediation
    
    
    379,201Other liabilities
    
    
    19,929Provisions
    
    
    11,790Items pending allocation
    
    
    938Total liabilities
    
    
    1,804,534Total shareholders equity
    
    
    20,110Total liabilities and shareholders equity
    
    
    1,824,644
 As a result of the acquisition, pursuant Central Bank rules, the Intangible assets
account includes a positive goodwill of 66,042, resulting from the difference between the
total price paid (19,509) for the total shares of common stock and the negative
shareholders equity of Nuevo Banco Bisel S.A. as of the acquisition date (-46,533), after
deducting the preferred shares held by SEDESA and the preferred dividend accrued as of
such date (66,643). Such positive goodwill is amortized in ten years pursuant to Central
Bank rules. As of December 31, 2007, and 2006, the abovementioned goodwill totaled
56,686, and 63,290, respectively, net of amortizations of 9,356, and 2,752, respectively.
 On May 28, 2007, the Bank acquired the preferred shares mentioned above by the Bank by
exercising a call option in relation to them. The price payable was fixed at 66,240 plus
an annual nominal 4% interest to be capitallized annually until payment thereof. Such
price will be paid 15 years after taking possession of Nuevo Banco Bisel S.A. (August 11,
2021).
 See additionally note 3.8. for pro forma information.
 3.8.
    
    Pro forma information
 The following pro forma information is presented to show the results of operations for the
years ended December 31, 2006 and 2005, if Banco Macro S.A., Banco del Tucumán S.A. and
Nuevo Banco Bisel S.A. had operated on a consolidated basis as from January 1, 2005. The
balances for the years ended December 31, 2006 and 2005 were considered and intercompany
transactions that were eliminated. The results of operations for Banco del Tucumán S.A. and
Nuevo Banco Bisel S.A. were included in the 2006 income statement as from January 1, 2006
to May 5, 2006 and August 10, 2006, respectively. These pro forma results are not
necessarily indicative of the results of the consolidated entity may have in the future or
would have had if merged as from January 1, 2005.
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Pro Forma Central Bank RulesYear ended December 31,2006 (1)
    
    
    2005 (1)(unaudited)
    
    
    (unaudited)Financial income
    
    
    1,297,708
    
    
    
    1,013,939Financial expense
    
    
    (461,725
    )
    
    
    (427,036
    )Gross intermediation margin  Gain
    
    
    835,983
    
    
    
    586,903Provision for loan losses
    
    
    (72,400
    )
    
    
    (95,410
    )Service charge income
    
    
    516,159
    
    
    
    396,351Service charge expense
    
    
    (102,689
    )
    
    
    (76,225
    )Administrative expenses
    
    
    (787,312
    )
    
    
    (640,235
    )Net income from financial intermediation
    
    
    389,741
    
    
    
    171,384Other income
    
    
    270,441
    
    
    
    287,230Other expenses
    
    
    (203,168
    )
    
    
    (134,214
    )Minority interest
    
    
    (1,747
    )
    
    
    (1,574
    )Net income before income tax
    
    
    455,225
    
    
    
    322,806Income Tax
    
    
    (76,961
    )
    
    
    (34,042
    )Net income for the year
    
    
    378,306
    
    
    
    288,764Basic Net Earning Per Share  stated in pesos
    
    
    0.57
    
    
    
    0.47
 (1) See additionally nota 4.2.3.9.
    
    Red Innova Administradora de Fondos de Inversión S.A.On September 13, 2006, the Bank acquired 51% of the capital stock and voting rights of a
company based in Uruguay called Red Innova Administradora de Fondos de Inversión S.A. (Red
Innova), paying 229.On March 31, 2008, the Regular and Special General Shareholders Meeting of Red Innova
Administradora de Fondos de Inversión S.A. resolved its dissolution and liquidation from
such date.
 4.
    
    SIGNIFICANT ACCOUNTING POLICIESThe preparation of the Banks consolidated financial statements requires Management to make, in
certain cases, estimates and assumptions to determine the book amounts of assets and
liabilities, as well as the disclosure of contingent assets or liabilities as of each of the
dates of presentation of the accounting information included in these consolidated financial
statements.Management records entries based on the best estimates according to the likelihood of
occurrence of different future events and the final amounts may differ from such estimates,
which may have a positive or negative impact on future periods.
 4.1.
    
    Consolidation and basis of presentationThe Consolidated Financial Statements have been prepared taking into account accounting
principles issued by the Central Bank (Central Bank rules).For the purpose of these consolidated financial
statements, certain disclosures related to
formal legal requirements for reporting in Argentina have been omitted since they are not
required for SEC (Securities and Exchange Commission) reporting purposes.
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BANCO MACRO S.A. AND SUBSIDIARIES
 Under Central Banks rules and FACPCE (Federación Argentina de Consejos Profesionales de
Ciencias Económicas  Argentine Federation of Professional Council in Economic Sciences)
Technical Resolutions, Banco Macro S.A. has consolidated the following subsidiaries:
 
 EquityInvestmentPercentage held of
    
    
    amounts as ofShares
    
    
    Capital
    
    
    
    
    
    
    December 31,Company
    
    Class
    
    
    Number
    
    
    stock
    
    
    Votes
    
    
    2007Nuevo Banco Bisel S.A. (a)
    
    Common
    
    
    845,048,263Preferred
    
    
    66,604,774
    
    
    
    99.996
    %
    
    
    99.996
    %
    
    
    1,109,160Banco del Tucumán S.A. (a)
    
    Common
    
    
    395,341
    
    
    
    89.932
    %
    
    
    89.932
    %
    
    
    108,095Macro Bank Limited (ex 
Sud Bank & Trust) (b)
    
    Common
    
    
    9,816,899
    
    
    
    99.999
    %
    
    
    99.999
    %
    
    
    118,320Macro Securities S.A.
Sociedad de Bolsa (c)
    
    Common
    
    
    9,498,100
    
    
    
    99.980
    %
    
    
    99.980
    %
    
    
    16,636Sud Inversiones & Análisis
S.A. (c) y (d)
    
    Common
    
    
    2,297,263
    
    
    
    98.000
    %
    
    
    98.000
    %
    
    
    11,361Macro Fondos S.G.F.C.I. S.A.
    
    Common
    
    
    1,685,284
    
    
    
    98.382
    %
    
    
    98.382
    %
    
    
    1,501Macro Valores S.A. (e)
    
    Common
    
    
    18,920
    
    
    
    99.947
    %
    
    
    99.947
    %
    
    
    166Red Innova Administradora
de Fondos de Inversión S.A.
(a)
    
    Common
    
    
    4,156
    
    
    
    51.000
    %
    
    
    51.000
    %
    
    
    362
 (a)
    
    Nuevo Banco Bisel S.A. has been consolidated since August 11, 2006, Banco del
Tucumán S.A. since May 5, 2006, and Red Innova Administradora de Fondos de Inversión
S.A. since September 13, 2006 (see notes 3.6., 3.7. and 3.9.).(b)
    
    Consolidates with Sud Asesores (ROU) S.A. (voting rights: 100%, equity
interest: 150).(c)
    
    On December 18, 2007, the Bank made irrevocable contributions of 1,985 in
both Macro Securities S.A. Sociedad de Bolsa and Sud Inversiones & Análisis S.A.,
which were accepted by the Board of Directors of the abovementioned companies. The
irrevocable nature of such contributions shall last 180 days, as from the date on
which such contributions are accepted. During the abovementioned term, Macro
Securities S.A. Sociedad de Bolsa and Sud Inversiones & Análisis S.A. should hold a
shareholders meeting with a view to deciding whether the irrevocable contributions
shall be activated or reimbursed.(d)
    
    Consolidates with Macro Fondos S.G.F.C.I. S.A. (percentage of capital stock
and votes 80.90%).(e)
    
    On March 19, 2008, the Bank sold its interest in Macro Valores S.A.
 The intercompany transactions have been eliminated.Furthermore, the financial statements of Macro Bank Limited (former Sud Bank & Trust
Company Limited) (consolidated with Sud Asesores (ROU) S.A.) and Red Innova Administradora
de Fondos de Inversión S.A. were conformed to the Central Bank rules. Also, as they are originally stated in
US dollars and Uruguayan pesos, respectively, they were translated into pesos following the
procedures indicated below:
 (a)
    
    Assets and liabilities were converted 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, 2007, and 2006.
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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 results were translated into pesos, as described in (a) above.
The difference between the addition of the amounts and lump-sum income (loss) for
each year (difference between retained earnings at beginning of year and retained
earnings at year-end) was recorded in Financial income  Difference in quoted prices
of gold and foreign currency or Financial expense  Difference in quoted prices of
gold and foreign currency accounts, as the case may be.
 4.2.
    
    Comparative informationThe consolidated financial statements as of December 31, 2007, are presented comparatively
with those of December 31, 2006 and 2005.Through Communiqué A 4,667 issued on May 14, 2007, as supplemented, the Central Bank
introduced changes to the regulations related to the presentation and disclosure of the
financial statements of financial institutions as regards the regulations effective during
the prior year. Consequently, the consolidated financial statements as of December 31, 2006
and 2005, were reclassified, by application of such Communiqués, for the sole purpose of
comparing them with the current consolidated financial statements.See additionally notes 3.5) and 4.4.s).4.3.
    
    Restatement into constant pesosProfessional accounting standards establish that the financial statements should be stated
in constant pesos. Within 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 related 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 recognize the changes in the peso purchasing
power until February 28, 2003, under Presidential Decree No. 664/03, IGJ (Argentine
business associations regulatory agency) General Resolution No. 4/2003, CNV (Argentine
Securities Commission) 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 accounting information was 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.
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BANCO MACRO S.A. AND SUBSIDIARIES
 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.
 4.4.
    
    Valuation methodsThe main valuation methods used to prepare these consolidated financial statements as of
December 31, 2007, and 2006, 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 closing date of transactions on
the last business day of each year. Additionally, assets and liabilities denominated in
other foreign currencies were translated at the exchange rate communicated by the
Central Banks dealing room. Foreign exchange differences were recorded in the
statement of income for each year.b)
    
    Government and private securities:They were valued at the quoted price of each security effective at the last business day
of each year. Differences in quoted values were recorded in the statement of income for
each year.c)
    
    Assets included in the provisions of Central Bank Communiqué A 3,911, as
supplemented, Guaranteed loans Presidential Decree No. 1,387/01:They were valued at the lower of their present values or technical values, as
established by Central Bank Communiqué A 3,911, as supplemented. If such lower value
exceeds the notional value (as defined in point 4 of Communiqué A 3,911), the
difference is debited from the asset account and the credit is recorded in a contra -
asset account. If, instead, such lower value is also lower than the notional value, the
difference is recorded as a loss in the income statement and the offsetting credit is
recorded in the asset account.The amounts recorded in the asset offset accounts are adjusted every month based on the
values calculated according to Communiqué A 3,911, as supplemented.For purposes of determining the present value, in the case of instruments that include
indexation clauses, the cash flows according to the contractual conditions fixed in each
case for the financial assistance described above were discounted at the interest rates
that were established in the schedule included in point 2 of the abovementioned
Communiqué A 3,911. As from August 2007, every month the Central Bank establishes the
discount rate to be used, as set forth by Communiqué A 4704, as supplemented.In the case of instruments that do not comprise adjustment clauses, Communiqué A 4,163
established the methodology to calculate such present values.
 Guaranteed LoansTechnical Value
    
    
    Carrying amount
    
    
    Discount2007
    
    
    787,447
    
    
    
    729,955
    
    
    
    57,4922006
    
    
    782,407
    
    
    
    771,465
    
    
    
    10,942
 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.
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BANCO MACRO S.A. AND SUBSIDIARIES
 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)
    
    Guaranteed Loans: as explained in note 4.4.c).e.2)
    
    Other loans and receivables from sale of assets: they were adjusted
according to Communiqué A 3,507, and supplementary regulations, which established
that payments made until September 30, 2002, were to be made under the original
conditions of each transaction and would be considered prepayments. As from
February 3, 2002, principal was adjusted by the CER until each year-end, as the
case may be.e.3)
    
    Deposits and other assets and liabilities: The CER as of the last
business day of each year was applied.
 f)
    
    Allowance for loan losses and provision for contingent commitments:These provisions have been calculated based on the estimated uncollectibility risk of
the Banks credit portfolio, which 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.When loans covered by specific allowances are settled or generate a reversal of the
allowances recorded in the current year, and in cases where the allowances set in prior
years exceed what is considered necessary, the excess allowance is reversed with effects
on income for the current year.The recovery of receivables previously classified under Debit-balance control
memorandum accounts  Receivables classified as irrecoverable are charged directly to
income.The Bank assesses the credit risk related to possible commitments and determines the
appropriate amount of allowances to be recorded. The allowances related to amounts
recorded in memorandum accounts  possible commitments are included under Provisions.g)
    
    Loans and deposits of government securities:They were valued at the quoted price of each security effective on the last business day
of each year, plus the related accrued interest. Differences in quoted market values
were recorded in the statement of income for 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 the
related premiums accrued as of each year-end.h.2)
    
    Securities and foreign currency to be received for spot and forward
purchases pending settlement and to be delivered for spot and forward sales pending
settlement: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.
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BANCO MACRO S.A. AND SUBSIDIARIES
 h.3)
    
    Debt securities and certificates of participation in financial trusts:
 i.
    
    Debt securities: they were valued as provided by
Central Bank Communiqué A 4,414, i.e. at their cost value increased
exponentially by their internal rate of return.ii.
    
    Certificates of participation in the Suquía and Bisel
financial trusts: they were valued based on the value of incorporation to
shareholders equity of formers Nuevo Banco Suquía S.A. and Nuevo Banco
Bisel S.A., respectively, plus interest accrued, net of the redemptions
made by the abovementioned banks, in their capacity as beneficiaries of the
certificates of participation. As of December 31, 2007, and 2006, such
certificates were fully reserved.iii.
    
    Other certificates of participation: they were stated
at nominal value increased, as the case may be, by interest accrued and CER
until the last business day of each year.
 The values booked of the
abovementioned certificates of participation (points ii. and iii.), net of allowances recorded, do not exceed the recoverable
values from the respective trusts.
 h.4)
    
    Unlisted corporate bonds purchased:They were valued by increasing the value of holdings based on their internal rate
of return, as provided by Central Bank Communiqué A 4,414 and supplementary
regulations.h.5)
    
    Non-subordinated corporate bonds issued:They were valued at the amount due for principal and interest accrued as of
year-end, converted into pesos pursuant to the method described in note 4.4.a), as
the case may be.
 i)
    
    Assets subject to financial lease:
 They were valued at the net investment in the lease less unearned income and calculated
in accordance with the conditions agreed upon in the respective agreements, by applying
the interest rate imputed therein.
 j)
    
    Investments in other companies:
 j.1)
    
    In non-controlled financial institutions (less than 50% ownership
interest), supplementary and authorized activities:
 i.
    
    In Argentine pesos: they were valued at acquisition cost,
plus the nominal value of share-dividends received, restated as explained in
note 4.3.
 ii.
    
    In foreign currency: they were valued at the acquisition
cost in foreign currency, plus the nominal value of share-dividends
received, converted into pesos in accordance with the criterion stated in
note 4.4.a).
 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.
 j.2)
    
    In other non-controlled companies: they were valued at acquisition
cost, plus the nominal value of share-dividends received, restated as described in
note 4.3., net of allowances for impairment in value. Such net values do not exceed
the values calculated by the equity method on the basis of the latest financial
statements published by the companies.
 k)
    
    Bank premises and equipment and other assets:They were valued at their acquisition cost, restated as explained in note 4.3., less the
related accumulated depreciation calculated in proportion to their estimated months of
useful life.
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BANCO MACRO S.A. AND SUBSIDIARIES
 l)
    
    Intangible assets:
 l.1)
    
    Goodwill and organization and development costs (except differences due
to court orders  Nondeductible for the determination of the computable equity):
they were valued at their cost, restated as explained in note 4.3., less the
related accumulated amortization, calculated under the straight line method over
their estimated months of useful life.l.2)
    
    Differences due to court orders  Nondeductible for the
determination of the computable equity: as of December 31, 2007 and 2006, the
Intangible Assets  Organization and development costs account includes 116,464
(net of amortization for 209,162) and 74,745 (net of amortization for 179,883),
respectively. These assets represent: (i) 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
estimates based on the Argentine Supreme Courts decisions dated December 27, 2006,
and August 28, 2007, and the amount recorded under Central Bank rules effective
(convert into Argentine pesos at the Ps. 1.4 to USD 1 exchange rate, or its
equivalent in other currencies, plus CER). Additionally, and as disclosed in
Central Bank Communiqué A 3,916, since April 2003 the sums related to the amounts
paid are amortized straight line in 60 monthly installments, and (ii) additionally
as of December 31, 2007, and as stated in Central Banks Communiqué A 4,686, the
amounts related to the capitalization of the dollarization effect regarding court
deposits, which will be amortized in equal, monthly and consecutive installments in
a maximum term of 24 months as from July 2007.
 m)
    
    Valuation of derivatives:
 m.1)
    
    Put options taken: as of December 31, 2006, they were valued at the
agreed-upon exercise price.m.2)
    
    Put options sold on BODEN 2007, 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.m.3)
    
    Call options sold: as of December 31, 2006, such options were valued at
the agreed-upon exercise price since, as of such dates, the securities traded had
no habitual and representative quoted price.m.4)
    
    Call options taken and put options sold on preferred shares of Nuevo
Banco Bisel S.A.: as of December 31, 2006, they were valued at their exercise
price.m.5)
    
    Interest rate swap: as of December 31, 2007, this included the
equivalent in pesos of the notional value in relation to which the Bank agreed to
pay a variable rate and charge a fixed rate.m.6)
    
    Forward transactions offset: they were valued at the quoted price of
those assets, effective on the last business day of each year. Differences in
quoted market values were recorded in the statement of income for each year.
 In all cases, see also note 33.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.
The Bank records liabilities whenever it is probable that future costs will be incurred
and whenever such costs may be fairly estimated.
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BANCO MACRO S.A. AND SUBSIDIARIES
 p)
    
    Subordinated corporate bonds:They were valued at the amount due for principal and interest accrued as of each
year-end, converted into pesos pursuant to the method described in note 4.4.a.q)
    
    Shareholders equity accounts: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.r)
    
    Consolidated Statement of income accounts:Accounts reflecting monetary transactions occurred in the fiscal year ended December 31,
2007, 2006 and 2005 (financial income and expenses, service-charge income and
service-charge expenses, administrative expenses, loan losses, etc.), were computed at
their historical cost.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.s)
    
    Statement of cash flowsFor the purpose of reporting cash flows, cash and cash equivalents include the following
accounts: Cash and Government and private securities which mature less than 90 days as
from their date of acquisition. As of December 31, 2007, 2006 and 2005 the Bank has no
such securities.Furthermore, through Communiqué A 4,667, as supplemented, the Central Bank introduced
certain changes to regulations related to the disclosure of the cash flows.
Consequently, the Bank prepared the statement of cash flows for the year ended December
31, 2007 pursuant the new Central Bank regulations.Additionally, as set forth by the abovementioned Central Bank Communiqué, it is not
compulsory to disclose comparative information under the new regulations. Consequently,
the accompanying consolidated financial statements, include the statements of cash flows
for the years ended December 31, 2006 and 2005 pursuant the regulations effective then.
 5.
    
    INCOME TAX AND MINIMUM PRESUMED INCOME TAX (TOMPI)As required by Central Banks rules, the Bank calculates income tax by applying the effective
35% rate to the estimated taxable income for each year, without considering the effect of
temporary differences between book and taxable income.In fiscal year 1998, Law No. 25,063 established minimum presumed income tax for a ten-year
term. This tax is supplementary to income tax, while the latter is levied on the taxable income
for the year, minimum presumed income tax is a minimum levy assessment by applying the current
0.2% rate to the book value of certain assets. Therefore, the Banks tax obligation for each
year will be equal to the higher of these taxes. However, if minimum presumed income tax
exceeds income tax in a given tax year, such excess may be computed as a payment on account of
any income tax in excess of minimum presumed income tax that may occur in any of the following
ten years, once accumulated tax loss carry forwards (NOLs) have been used.As of December 31, 2007 and 2006, the Bank estimated that accrued income tax amounted to 92,345
and 76,961, respectively.In addition, the Bank assessed a minimum presumed income tax charge, which was capitalized
under Other receivables.
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BANCO MACRO S.A. AND SUBSIDIARIES
 Consequently, as of December 31, 2007 and 2006, the Bank maintained a total amount of 48,891
and 63,843 respectively, for minimum presumed income tax credit. Such credit is considered as
an asset because the Bank estimated that it will be used within 10 years, as established by
Central Bank Communiqué A 4,295, as supplemented.The following is a detail of such tax credit and the estimated NOLs as of December 31, 2007,
indicating the estimated year to use it and the expiration year, respectively.
 Minimumpresumedincome tax
    
    
    
    
    Estimated taxcredit (1)
    
    
    
    
    year to use it25,704
    
    
    
    
    
    200825,704
    (2)
 Expiration taxNOLs
    
    
    
    
    year153,717
    (2)
    
    
    
    
    2008500
    
    
    
    
    
    2009250
    
    
    
    
    
    2010800
    
    
    
    
    
    20111,294
    
    
    
    
    
    2012156,561
 (1)
    
    Figures taking into account the tax return filed on April 23, 2008 related to fiscal year
2007.(2)
    
    Figures related to Nuevo Banco Bisel S.A. In addition, as of December 31, 2007, the Bank made income tax prepayments for 33,545 for the
current 2007 tax year, which were recorded in the Other receivables account.Regarding the taxation of income from the conversion into pesos and the CER application for
Guaranteed Loans, due to different interpretations, on August 14, 2006, the Federal Executive
issued Presidential Decree No. 1,035/06, published in the Official Bulletin on August 16, 2006,
which defined such treatment. Due to such regulation and as established by AFIP (Federal Public
Revenue Agency) General Resolution No. 2,165/06, on December 26, 2006, the Bank communicated
the option to account for such results under the accrued and due and payable method (devengado
exigible). Accordingly, since the fiscal year ended December 31, 2006 the Bank accrues in the
income tax the effects deriving from the conversion into pesos and the CER application for
Guaranteed Loans.
 6.
    
    DIFFERENCES BETWEEN CENTRAL BANK RULES AND PROFESSIONAL ACCOUNTING STANDARDS EFFECTIVE IN
ARGENTINAIn August 2005, the CPCECABA (Professional Council in Economic Sciences of the City of Buenos
Aires) approved Resolution CD No 93/05, whereby it introduced a series of changes in its
professional accounting standards, as a result of the agreement reached with the FACPCE to
unify Argentine professional accounting standards. Such changes involve the adoption of the
technical resolutions and interpretations issued by the FACPCEs governing board through April
1, 2005. Such resolution became generally effective in the City of Buenos Aires for fiscal
years beginning as from January 1, 2006, and it provides transition rules that defer the
effective term of certain changes to the years beginning as from January 1, 2008.Also, through Resolution C.D. 42/2006, the CPCECABA approved Technical Resolution No. 23,
effective for annual or interim-period financial statements for fiscal years beginning July 1,
2006, and its early adoption is permitted. In turn, the CNV adopted such resolution through
General Resolution No. 494, which is applicable to fiscal years beginning April 1, 2007, and
its early adoption is also permitted.
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BANCO MACRO S.A. AND SUBSIDIARIES
 These professional accounting standards differ, in certain valuation and disclosure aspects,
from Central Bank rules. The differences between those standards, which the Bank identified and
deemed significant with respect to these consolidated financial statements (based on the
quantification thereof or any other estimate made, whenever the quantification was not
possible), are as follows:
 6.1.
    
    Valuation standards
 a)
    
    Holdings of government securities and loans to the nonfinancial government
sector  Guaranteed Loans: they are valued in accordance with regulations and rules
issued by the Argentine Government and the Central Bank. In particular, Central Bank
Communiqué A 3,911, as supplemented, establishes present value methods by applying
regulated discount rates, technical values and undiscounted cash flows, as detailed
in note 4.4.c). 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 when financial
statements are prepared.The Bank`s particular situation in this regard is as follows:
 (i)
    
    As of December 31, 2007, 2006 and 2005, the Bank charged Federal
Government

guaranteed loans deriving from the exchange set forth by
Presidential Decree No. 1,387/01 under Loans to the nonfinancial government
sector for a total net amount 729,955, 771,465 and 641,801, respectively.
According to professional accounting standards, such assets should be stated at
market value. According to this valuation method, the value of these instruments
as of such dates amounted to 634,142, 772,756 and 635,477, respectively.(ii)
    
    As of December 31, 2005, the Bank booked in Government securities -
Holdings in investment accounts and Other receivables from financial
intermediation  Securities and foreign currency to be received from spot and
forward purchases pending settlement the securities received for the compensation
established by Presidential Decree No. 905/02 in the aggregate amount of 187,660.
According to professional accounting standards, such assets should have been
recorded in their market value. As of such date, the quoted price of such
securities amounted to 167,284.In 2006 the Bank valued the government securities received pursuant to the
abovementioned compensation at their quoted prices. The difference between the
quoted prices and the book values of such holdings at the end of 2005 fiscal year
should have been charged against an adjustment to prior-year income.(iii)
    
    As of December 31, 2005 Federal Government Secured Bonds deriving
from the exchange established by Presidential Decree No. 1,579/02 and other
holdings of unlisted government securities were recorded in Unlisted government
securities for a total net amount of 199,070. According to professional
accounting standards, such assets should be stated at market value. As of December
31, 2005, the quoted price of such assets amounted to 189,845.In 2006 the Bank valued the securities received from such exchange at their quoted
prices, as established by Central Bank Communiqué A 4,084. The difference
between the quoted prices and the book values of such holdings at beginning of year
should have been recorded against an adjustment to prior-year income.
 During the 2006 fiscal year, in the cases mentioned in points (ii) and (iii), the Bank
valued such securities at their quoted prices mainly because such holdings have been
earmarked for covering the settlement of net liabilities in the same securities.
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BANCO MACRO S.A. AND SUBSIDIARIES
 b)
    
    Intangible assets: As of December 31, 2007, 2006 and, 2005, the Bank capitalized under
Intangible Assets 116,464, 74,745 and 42,632, respectively, net of the related
amortization amounts of 209,162, 179,883 and 32,013, respectively, regarding the
foreign exchange differences mentioned in note 4.4.l.2) related to the reimbursement in
original currency of certain deposits converted into pesos and the effect of court
deposits dollarization. Such accounting treatment differs from the valuation and
disclosure methods established by professional accounting standards, which require
charging to income the higher costs for court deposits dollarization and decreasing the
book value of surpluses paid at their recoverable value. As of the date of the
accompanying consolidated financial statements, the existing evidence does not support
that the book value of such assets is fully or partially recoverable.c)
    
    The Bank assesses income tax by applying the effective rate to the
estimated taxable income without considering the effect of temporary differences
between book and taxable income. Under professional accounting standards, income tax
should be recognized through the deferred tax method.d)
    
    The acquisition of Banco Bansud S.A. by the Bank gave rise to an original
recording of negative goodwill of 365,560, which is the effect of the difference
between the purchase price and the interest acquired valued by the equity method, in
accordance with Central Bank rules. Later, the Bank applied the valuation and
disclosure rules established in Communiqué A 3,984, and reversed as of December 31,
2006, 100% of the aggregate amount of such goodwill (the maximum amortization allowed
per annum is 20%). The abovementioned goodwill gave rise to gains on inflation
exposure through February 28, 2003.In addition, the acquisition of Nuevo Banco Suquía S.A. by the Bank resulted in
negative goodwill amounting to 483, which is the effect of the difference between the
purchase price and the book value of the net assets acquired under Central Bank rules.Under professional accounting standards effective in Argentina, when the purchase price
is lower than the fair value of the related identifiable assets, any unallocated
differences between the price and such fair value shall be either considered as a gain
for the year or deferred (as negative goodwill) and subsequently amortized, as
appropriate on the basis of the specific circumstances of the transaction that
originated such differences.In addition, as detailed in notes 3.6. and 3.7., the acquisitions of Banco del Tucumán
S.A. and Nuevo Banco Bisel S.A. by the Bank gave rise to recording the related positive
goodwill for an amount of 18,242 and 66,042, respectively, resulting from the
difference between the purchase price of each investment and the book value of the
underlying equity acquired. Based on Central Bank rules, the Bank amortizes such
positive goodwill through the straight-line method based on an estimate ten-year useful
life.Under professional accounting standards effective in Argentina, when the purchase price
of an investment is higher than the fair value of the related identifiable net assets,
a positive goodwill will be recognized and it will be (i) amortized systematically
throughout the estimated useful life and (ii) compared to its recoverable value as of
each year-end.e)
    
    The Bank booked an interest rate swap agreement in conformity with the
Central Bank rules, as mentioned in note 4.4.m.5). Under accounting standards
effective in Argentina, the measurement of derivative financial instruments should be
made at their fair 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.
 6.2.
    
    Disclosure aspectsThere are certain disclosure differences between the criteria established by Central Bank
and Argentine professional accounting standards.
  F - 32




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 
 7.
    
    RESTRICTED AND PLEDGED ASSETSAs of December 31, 2007 and 2006, certain assets are restricted as follows:
 (a)
    
    Government securities and private securities:
 1)
    
    Discount Bonds received in the exchange for Consolidation Bonds in Pesos -
First Series amounting to 241 and 302, respectively, assigned to settle payables to
the Central Bank and, as of December 31, 2006, for an amount of 2,500, assigned to
settle payables to the BNA for safety-net financing originated in the acquisition of
assets and liabilities from former Banco Federal Argentino.2)
    
    Secured Bonds under Presidential Decree No. 1,579/02 for 30,283 and 35,994
(face value Ps. 24,400,000), respectively, provided as security for the loan received
from Banco de Inversión y Comercio Exterior S.A. (BICE) to finance the Paso San
Francisco public work, in accordance with the note sent by the Bank on November 5,
2002, BICEs reply dated November 18, 2002, and the security agreement covering the
abovementioned securities and dated January 29, 2004.3)
    
    Gross Domestic Product (GDP) linked securities maturing in 2035 for 53 and
671, respectively, under the provisions of the Prospectus Supplement approved by
Presidential Decree No. 1,735/04, for the same matters mentioned in section (a) above
and which were originally attached to the Discount Bonds issued under the Offer to
exchange eligible Argentine government debt securities.4)
    
    As of December 31, 2007, Central Bank listed notes (NOBAC)- Own portfolio, in
Argentine pesos with variable coupon (BADLAR), maturing on August 6, 2008, for an
amount of 13,299 (for a face value of Ps. 13,000,000) and as of December 31, 2006,
Central Bank listed notes (NOBAC)  Own portfolio, in Argentine pesos with variable
coupon (BADLAR), maturing on December 19, 2007, for an amount of 4,956, (for a face
value of Ps. 4,900,000), used to perform foreign currency trading forward transactions
in Rosario Futures Exchange (ROFEX).5)
    
    As of December 31, 2007, Central Bank listed notes (NOBAC)  Own portfolio,
in Argentine pesos with variable coupon (BADLAR), maturing on August 06, 2008, for an
amount of 3,276 (for a face value of Ps. 3,202,000), used to perform foreign currency
trading forward transactions in Mercado Abierto Electrónico S.A. (MAE).6)
    
    As of December 31, 2007, Central Bank listed notes (NOBAC)  Own portfolio,
in Argentine pesos with variable coupon (BADLAR), maturing on February 11, 2009, for
an amount of 14,140 (for a face value of Ps. 14,000,000), and Central Bank listed
notes (NOBAC)  Own portfolio, in Argentine pesos with variable coupon (BADLAR),
maturing on January 21, 2009, for an amount of 33,947 (for a face value of Ps.
33,000,000), used to guarantee the repayment of the loan in pesos agreed upon under
the Global Credit Program for Small- and Medium-sized Enterprises and
Micro-enterprises received from the Under-department of Small- and Medium-sized
Enterprises and Regional Development (SSEPyMEyDR).7)
    
    As of December 31, 2007, and 2006, the Bank continues to keep as security
BODEN 2007, Book-entry Mortgage Bills and Guaranteed Loans for 170,271 and 221,329,
respectively, assigned to the Central Bank to secure the loans for the acquisition of
the Argentine Government Bonds (section 14, Presidential Decree No. 905/2002 Canje
I), which amounted to 163,122 and 180,908 as of such date.8)
    
    As of December 31, 2007, notes (NOBAC) for a face value of Ps. 26,000,000
were booked in accounts for 25,115, delivered to the Central Bank to guarantee the
credit transaction granted according to the Inter American Develoment Bank (IADB) line
for the global credit program for small- and medium-sized enterprise in the amount of
9,131.
 (b)
    
    Loans:
 1)
    
    Agreements for loans backed by pledges and unsecured loans for 12,801 and
19,241, respectively, provided as guarantee in favor of the Mypes II Trust Fund, in
full compliance with the terms and conditions of the program called Mypes II (a) and
under the Global Credit Program for Small-sized and Micro-enterprises.
  F - 33




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2)
    
    As of December 31, 2007, Mortgage Bills for 26,389, securing the loan granted
by the Central Bank to former Nuevo Banco Suquía S.A. to purchase Argentine
Government Bonds 2005, 2007 and 2012, which would be used for the deposit exchange
option exercised by the holders of deposits with such bank.3)
    
    As of December 31, 2007, Guaranteed Loans for 212,298, securing the loan
granted by the Central Bank to former Nuevo Banco Suquía S.A. to purchase Argentine
Government Bonds 2005, 2007 and 2012, which would be used for the deposit exchange
option exercised by the holders of deposits with such bank.
 (c)
    
    Other receivables from financial intermediation:
 1)
    
    It includes Central Bank unavailable deposits for 552, as provided by Central
Bank Communiqué A 1,190. The Bank has recorded allowances covering 100% of this
receivable.2)
    
    The Bank had special guarantee checking accounts opened in the Central Bank
for transactions related to the electronic clearing houses and similar entities, for
an amount of 186,386 and 115,682, respectively.3)
    
    Contributions to the Risk Fund of Garantizar S.G.R. (mutual guarantee
association) for 10,000 and 10,422, respectively, resulting from 10,000 contributions
made by the Bank on December 13, 2007 and December 26, 2005, in its capacity as
partner of such company. Such contribution may be fully or partially reimbursed once
two years have elapsed from the date of contribution. On December 26, 2007, Garantizar
S.G.R. returned 90% of the original capital contributed two years before as partial
settlement; the final settlement shall be made during the first quarter of 2008.4)
    
    Equity interests in the Risk Fund of Puente Hnos. S.G.R. for 5,356, resulting
from a 5,000 contribution made on October 19, 2007. Such contribution may be fully or
partially reimbursed after two years as from the contribution date.
 (d)
    
    Investments in other companies:
 1)
    
    Irrevocable capital contributions to Tunas del Chaco S.A., Emporio del Chaco
S.A. and Proposis S.A. in the amount of 946, 874 and 747, respectively, under the
deferment of federal taxes, subscribed in accordance with the promotion system
established by Law No. 22,021, as amended by Law No. 22,702, which provides that the
investment must be kept in assets for a term not shorter than five years starting on
January 1 of the year subsequent to that when the investment was made (investment
year:2003).2)
    
    Preferred shares of Nuevo Banco Bisel S.A. amounting to 66,240 with a secured
first-degree security agreement in favor of SEDESA to guarantee to such Company the
price payment and the compliance with all the obligations assumed in the purchase and
sale agreement dated May 28, 2007 (see note 3.7.).3)
    
    As of December 31, 2007 and 2006, the two shares in Mercado de Valores de
Buenos Aires S.A. in the amount of 1,452 are pledged in favor of La Buenos Aires Cía.
Argentina de Seguros S.A. under the insurance agreement entered into by the company
that issued such shares to cover the security granted in connection with Sociedad de
Bolsas possible failure to comply with its obligations.
 (e)
    
    Other receivables:
 1)
    
    Attachments amounting to 26 and 543, respectively.2)
    
    Security deposits related to credit card transactions for 18,282 and 21,567,
respectively.
  F - 34




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 3)
    
    As of December 31, 2007, and 2006, it includes receivables from foreign correspondents
for 7,711 and 7,417, respectively, acquired from Fideicomiso Bisel and subject to
attachments against former Banco Bisel S.A., although these accounts are part of the
assets excluded from former Banco Bisel S.A. as per Resolution 580/02 of the Central
Bank Board of Governors. These amounts were fully booked as allowance as of both dates.
 4)
    
    As of December 31, 2006, it included funds to guarantee financial trust
expenses and liquidity of 1,137.5)
    
    Other security deposits for 5,839 and 6,936, respectively.
 8.
    
    TRANSACTIONS WITH RELATED PARTIESAs of December 31, 2007, 2006 and 2005, the receivables / payables and income (loss) from
transactions performed with subsidiaries and related parties according to the provisions of Law
No. 19,550 are as follows:
 NuevoBanco
    
    
    Banco del
    
    
    MacroBisel
    
    
    Tucumán
    
    
    Bank
    
    
    Other
    
    
    Total
    
    
    TotalS.A.
    
    
    S.A.
    
    
    Limited
    
    
    subsidiaries
    
    
    2007
    
    
    2006ASSETSCash and due from
banks and
correspondents
    
    
    
    
    
    
    
    
    
    
    2,258
    
    
    
    
    
    
    
    2,258
    
    
    
    2,200Other receivables
from financial
intermediation
    
    
    427,366
    
    
    
    9
    
    
    
    
    
    
    
    15,724
    
    
    
    443,099
    
    
    
    479,370Other receivables
    
    
    673
    
    
    
    399
    
    
    
    
    
    
    
    277
    
    
    
    1,349
    
    
    
    3,262Total assets
    
    
    428,039
    
    
    
    408
    
    
    
    2,258
    
    
    
    16,001
    
    
    
    446,706
    
    
    
    484,832LIABILITIESDeposits
    
    
    
    
    
    
    
    
    
    
    946
    
    
    
    1,754
    
    
    
    2,700
    
    
    
    1,981Other liabilities
from financial
intermediation
    
    
    535,529
    
    
    
    
    
    
    
    
    
    
    
    14,811
    
    
    
    550,340
    
    
    
    473,402Other liabilities
    
    
    
    
    
    
    69
    
    
    
    
    
    
    
    
    
    
    
    69
    
    
    
    9Total liabilities
    
    
    535,529
    
    
    
    69
    
    
    
    946
    
    
    
    16,565
    
    
    
    553,109
    
    
    
    475,392MEMORANDUM ACCOUNTSDebit Balance
accounts  Control
    
    
    
    
    
    
    
    
    
    
    18,550
    
    
    
    
    
    
    
    18,550
    
    
    
    1,011Credit Balance
accounts 
Contingent
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,213
    
    
    
    2,213
    
    
    
    
  F - 35




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 NuevoBanco
    
    
    Banco del
    
    
    MacroBisel
    
    
    Tucumán
    
    
    Bank
    
    
    Other
    
    
    Total
    
    
    Total
    
    
    TotalS.A.
    
    
    S.A.
    
    
    Limited
    
    
    subsidiaries
    
    
    2007
    
    
    2006
    
    
    2005INCOME (LOSS)Financial income
    
    
    14,775
    
    
    
    140
    
    
    
    2
    
    
    
    27
    
    
    
    14,944
    
    
    
    1,263
    
    
    
    163Financial expense
    
    
    (180
    )
    
    
    (4,820
    )
    
    
    (5
    )
    
    
    
    
    
    
    (5,005
    )
    
    
    (4,887
    )
    
    
    (2,089
    )Provision for loan losses
    
    
    (2,527
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,527
    )
    
    
    
    
    
    
    Service-charge income
    
    
    1
    
    
    
    23
    
    
    
    
    
    
    
    387
    
    
    
    411
    
    
    
    110
    
    
    
    70Service-charge expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    (1
    )
    
    
    
    
    
    
    (37
    )Other income
    
    
    
    
    
    
    1,980
    
    
    
    
    
    
    
    
    
    
    
    1,980
    
    
    
    
    
    
    
    Other expense
    
    
    (785
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (785
    )
    
    
    
    
    
    
    Total income (expense)
    
    
    11,284
    
    
    
    (2,677
    )
    
    
    (3
    )
    
    
    413
    
    
    
    9,017
    
    
    
    (3,514
    )
    
    
    (1,893
    )
  MacroSecurities
    
    
    Sud
    
    
    MacroS.A.
    
    
    Inversiones
    
    
    Fondos
    
    
    MacroSociedad
    
    
    & Análisis
    
    
    S.G.F.C.I.
    
    
    Valoresde Bolsa
    
    
    S.A.
    
    
    S.A.
    
    
    S.A.
    
    
    Total 2007ASSETSOther receivables
from financial
intermediation
    
    
    15,724
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15,724Other receivables
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    277
    
    
    
    277Total assets
    
    
    15,724
    
    
    
    
    
    
    
    
    
    
    
    277
    
    
    
    16,001LIABILITIESDeposits
    
    
    1,095
    
    
    
    320
    
    
    
    50
    
    
    
    289
    
    
    
    1,754Other liabilities
from financial
intermediation
    
    
    14,811
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,811Total liabilities
    
    
    15,906
    
    
    
    320
    
    
    
    50
    
    
    
    289
    
    
    
    16,565
  F - 36




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 MacroSecurities
    
    
    Sud
    
    
    MacroS.A.
    
    
    Inversiones
    
    
    Fondos
    
    
    MacroSociedad
    
    
    & Análisis
    
    
    S.G.F.C.I.
    
    
    Valoresde Bolsa
    
    
    S.A.
    
    
    S.A.
    
    
    S.A.
    
    
    Total 2007MEMORANDUM ACCOUNTSCredit Balance
accounts  Contingent
    
    
    2,213
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,213INCOME (LOSS)Financial income
    
    
    27
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27Service-charge income
    
    
    384
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    387Service-charge expense
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )Total income (expense)
    
    
    410
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    413
      F - 37




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 9.
    
    CAPITAL STOCKAs of December 31, 2007, 2006 and 2005, the capital structure is as follows:
 SHARES
    
    
    CAPITAL STOCKVotes
    
    
    
    
    
    
    Pendingper
    
    
    Issued and
    
    
    issuance orClass
    
    Number
    
    
    share
    
    
    outstanding
    
    
    distribution
    
    
    Paid-inRegistered Class A
shares of common stock
    
    
    11,235,670
    
    
    
    5
    
    
    
    11,236
    
    
    
    
    
    
    
    11,236Registered Class B
shares of common stock
    
    
    597,707,767
    
    
    
    1
    
    
    
    597,707
    
    
    
    
    
    
    
    597,707Total 2005
    
    
    608,943,437
    
    
    
    
    
    
    
    608,943
    
    
    
    
    
    
    
    608,943Capital stock
increase 
Registered Class B
shares of common
stock (1)
    
    
    75,000,000
    
    
    
    1
    
    
    
    75,000
    
    
    
    
    
    
    
    75,000Total 2006
    
    
    683,943,437
    
    
    
    
    
    
    
    683,943
    
    
    
    
    
    
    
    683,943Capital stock
increase 
Registered Class B
shares of common
stock (see Note
3.5)
    
    
    35,536
    
    
    
    1
    
    
    
    
    
    
    
    36
    
    
    
    36Total 2007
    
    
    683,978,973
    
    
    
    
    
    
    
    683,943
    
    
    
    36
    
    
    
    683,979As of December 31,
2007:Registered Class A
shares of common
stock
    
    
    11,235,670
    
    
    
    5
    
    
    
    11,236
    
    
    
    
    
    
    
    11,236Registered Class B
shares of common
stock
    
    
    672,743,303
    
    
    
    1
    
    
    
    672,707
    
    
    
    36
    
    
    
    672,743Total 2007
    
    
    683,978,973
    
    
    
    
    
    
    
    683,943
    
    
    
    36
    
    
    
    683,979
 (1)
    
    On September 26, 2005, the Banks general regular and special Shareholders Meeting
approved a capital increase of up to a face value of Ps. 75,000,000 (face value:
seventy-five million Argentine pesos), through the issuance of up to 75,000,000 new
common, registered, Class B shares with a face value of Ps. 1, each one entitled to one
vote, and entitled to dividends under the same conditions as common, registered, Class B
shares outstanding upon issuance, to be publicly subscribed in Argentina or abroad. On
January 6, 2006, the Bank submitted to the SEC an application for registration of the abovementioned stock issue. Finally, on
March 24, 2006, the Banks stock began to be listed on the New York Stock Exchange. During
the year ended December 31, 2006, such capital increase was fully subscribed and paid in.
As required by CNV General Resolution No. 368/01, the Bank informs that has applied all
funds resulting from the public subscription of shares to finance its general business
operations, increasing its lending capacity and obtaining funds for potential acquisitions.   F - 38




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
    10.
    
    CORPORATE BONDS ISSUANCEThe amounts recorded in the consolidated financial statements related to corporate bonds are as
follows:
 CORPORATE BONDS
    
    
    As of December, 31Original faceClass
    
    Value

    
    Ref.
    
    
    2007
    
    
    2006Subordinated corporate bonds
    
    USD    83,000,000
    
    
    a.1) y a.2
    )
    
    
    13,878
    
    
    
    44,342Subordinated corporate bonds
    
    USD     4,000,000
    
    
    b)
    
    
    
    2,503
    
    
    
    3,077Subordinated corporate bonds
    
    USD 150,000,000
    
    
    c.1)
    
    
    
    474,314
    
    
    
    460,425Non-subordinated corporate bonds
    
    USD 150,000,000
    
    
    c.2)
    
    
    
    489,390
    
    
    
    Non-subordinated corporate bonds
    
    USD 100,000,000
    
    
    c.3)
    
    
    
    310,147
    
    
    
    Total
    
    
    
    
    
    
    
    
    
    
    1,290,232
    
    
    
    507,844
  Fiscal Year
    
    Amounts2008
    
    
    35,3512009
    
    
    8202010
    
    
    8202012
    
    
    307,9412017
    
    
    472,6502036
    
    
    472,650Total
    
    
    1,290,232
 a.1)
    
    On February 19, 1996, the Banks regular and special Shareholders Meeting authorized
issuing Subordinated Corporate Bonds for up to a face value of USD 60,000,000, which was
carried out on May 31, 1996.The net funds arising from the placement of the abovementioned corporate bonds were used to
repay the loan borrowed from the Bank Capitalization Trust Fund (FFCB), currently the
Business Enterprise Reconstruction Trust Fund (FFRE), due to the acquisition of certain
assets and liabilities of Banco Federal Argentino.On April 16, 2003, the Bank paid the last installment of the Subordinated Corporate Bond,
pursuant to the payment schedule established.
  F - 39




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 a.2)
    
    On April 12, 1995, the Banks general regular Shareholders Meeting approved creating
a Global Program for the issuance of simple and unsecured Corporate Bonds, subordinated or
not, nonconvertible into shares for up to an aggregate of USD 50,000,000, and it entrusted
the Board of Directors with the task of setting the characteristics of the referred bonds
(price, form, payment and placement conditions, among others).On July 20, 1998, the Bank received funds from a loan requested from FFCB for an amount of
USD 5,000,000, whereby the Bank issued subordinated corporate bonds to finance the purchase
of former Banco de Jujuy S.A.On July 20, 2005, the Bank paid the last installment of the Subordinated Corporate Bond,
pursuant to the payment schedule established.Pursuant to the request made by the Bank to the Managing Committee of FFCB on July 26,
1999, to restructure the financing previously granted, a loan agreement was entered into on
December 29, 1999, by BNA, as FFCBs trustee, and the Bank, whereby FFCB granted a
subordinated loan of USD 18,000,000, which was used by the Bank to strengthen its own
computable equity.The Bank undertook to repay in full the new loan convertible into subordinated corporate
bonds in five annual, equal and successive installments, the first installment falling due
on December 29, 2002. In addition, the loan will accrue compensatory interest at 180 days
LIBOR plus 3% p.a. on balances, payable in arrears on an annual basis starting a year after
the disbursement date.On March 17, 2000, the Bank requested the CNVs authorization to issue subordinated
corporate bonds in the amount of USD 18,000,000 in order to repay the loan granted by the
FFCB, received on December 29, 1999.On December 29, 2006, the Bank paid the last installment of the Subordinated Corporate
Bond, pursuant to the payment schedule established.
      b)
    
    On January 20, 1997, the general special Shareholders Meeting of former Banco de Salta
S.A. (which

was absorbed by the Bank) approved issuing Subordinated Corporate Bonds in
the amount of USD 4,000,000 to exercise the power granted to it by the second clause of the
Loan Agreement entered into with Banco Provincial de Salta (in liquidation) on June 28,
1996. As required by the former Banco de Salta S.A., through Resolution No. 1,006, dated
December 19, 1997, the CNV authorized the entry of former such bank into the public
offering regime for the issuance of Corporate Bonds, and it also approved the public
offering of such bonds.In addition, on October 19, 1999, through Resolution No. 13,043, the CNV authorized the
transfer in favor of former Banco Macro Misiones S.A. (which was absorbed by the Bank) of
the authorization granted to former Banco de Salta S.A. to issue the referred Corporate
Bonds, since the latter merged with and into the former. Furthermore, it cancelled the
authorization granted to former Banco de Salta S.A. for the public offering of its corporate
bonds.Through December 31, 2007, the Bank had amortized the equivalent of USD 2,800,000 (original
value), following the method described in point a) above.
  F - 40




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 c)
    
    On September 1, 2006, the general regular Shareholders Meeting approved the creation
of a Global Program for the Issuance of simple Corporate Bonds in a short, medium or long
term, either subordinated or non-subordinated, with or without guarantee, in accordance
with the provisions of Law No. 23,576, as amended by Law No. 23,962, and further applicable
regulations, up to a maximum amount outstanding at any time during the term of the program of USD 400,000,000 (US dollars
four hundred million), 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.On June 4, 2007, the General Regular and Special Shareholders Meeting approved the increase
of the USD 400,000,000 cap (US dollars four hundred million) of the Global Program for the
Issuance of Corporate Bonds previously mentioned to USD 700,000,000 (US dollars seven
hundred million), or an equal amount in other currencies, as set forth in the original
program.c.1)
    
    On December 18, 2006, under the abovementioned Global Program, Banco Macro S.A. issued
the 1st series of Class 1 subordinated notes for a face value of USD 150,000,000 (US
dollars one hundred and fifty million). The main characteristics of this issuance are:
 
    
    Computable to the Banks required minimum capital (computable equity), as
established by Communiqué A 4,576.
    
    The notes fall due within a 30-year term, with full amortization upon maturity
(December 18, 2036), with a full redemption option in 10 years as from the issuance
date.
    
    Interest payments will be made with a semiannual frequency (June 18 and December
18, every year). In this regard, the Bank made payments on June 19, and December 18,
2007, for 22,484 and 22,951, respectively.
    
    During the first 10 years, the interest rate will be a fixed one (9.75%), and a
variable one for the remaining years (six-month LIBOR, plus 7.11%). As established by
Communiqué A 4,576 the interest rate payable can be increased only once over the
life of the instrument and subsequent to the 10-year term as from their issuance.
    
    They do not include covenants that change the subordination order.
    
    No interest on the notes will be neither fall due and payable if: (a) payments of
such interest exceed the distributable amount, as defined in the pricing supplement
dated November 23, 2006; (b) there is a general prohibition by the Central Bank; (c)
the Bank is subject to the provisions of sections 34 or 35 bis, Financial Institutions
Law; (d) the Bank is receiving financial assistance from the Central Bank under
Article 17 of Central Bank Charter; (e) the Bank is not in compliance with or have
failed to comply in a timely basis with reporting obligations to the Central Bank;
and/or (f) the Bank is not in compliance with minimum capital requirements (both on an
individual and consolidated basis) or with minimum cash reserves (on average).
    
    The unpaid interest is not cumulative.
    
    They have authorizations both for their public offering and their listing on
domestic or foreign stock exchanges or markets.
    
    In no case, may the payment of interests exceed net unappropriated retained
earnings (calculated under Communiqué A 4,591) which should be appropriated to a
reserve created to such end, as established by Communiqué A 4,576. On April 26,
2007, the General Regular Shareholders Meeting approved the creation of the special
reserve previously mentioned for an amount of 45,515. As of December 31, 2007, such
reserve was fully reversed.
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BANCO MACRO S.A. AND SUBSIDIARIES
 
    
    Pursuant to the Registration Rights Agreement entered into by the Bank and the
placing agents, Banco Macro S.A. agreed to file with the SEC and make its best
efforts to obtain a exchange authorization for the current issue of corporate bonds
for an issue registered with the SEC. Such agreement establishes certain deadlines
and penalties for the Bank to carry out the process.
 On August 16, 2007, the SEC authorized the abovementioned exchange offer, as well as
those relating to Classes 2 and 3 mentioned in sections c.2.) and c.3.) below.The Bank used the funds derived from such issuance to grant loans.c.2)
    
    On January 29, 2007, the Bank issued the 1st series of Class 2 nonsubordinated
corporate bonds at a fixed rate of 8.5% per anum, simple, not convertible into shares,
fully amortizable upon maturity (February 1, 2017), for a face value of USD 150,000,000 (US
dollars one hundred and fifty million), 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 every year, starting on August 1, 2007. Additionally, the Bank has the option
to redeem such issuance, either fully or partially, at any time and periodically.The Bank used the funds derived from such issuance to grant loans.For the same reasons regarding the macroeconomic context summarized in note 9 above, during
the quarter ended March 31, 2008, the Bank repurchased and settled non-subordinated
corporate bonds of this class for a face value amount of USD 9,500,000. Consequently, the
remaining principal as of the date of issuance of these financial statements totals USD
140,500,000.c.3)
    
    On June 7, 2007, the Bank issued the 1st series of Class 3 nonsubordinated corporate
bonds (peso-linked notes) at a fixed rate over principal in pesos of 10.75% p.a., simple,
not convertible into shares, fully amortizable upon maturity (June 7, 2012), for a face
value of USD 100,000,000 (US dollars one hundred million), under the terms and conditions
set forth in the price supplement dated May 18, 2007. Interest will be paid semiannually
on June 7 and December 7 of every year, starting on December 7, 2007. Additionally, the
Bank will only be able to redeem such issuance for tax purposes.The Bank used the funds derived from such issuance to grant loans.c.4)
    
    Within the framework of the abovementioned Global Program, the period to re-launch the
issuance of non-subordinated corporate bonds at a fixed rate, simple, not convertible into
 shares, maturing in 2014 for a face value of USD 100,000,000 (US dollars one hundred
million), in accordance with the terms and conditions set forth in the price supplement
dated October 18, 2007, expired on May 2, 2008. For the same reasons regarding the
macroeconomic context summarized in note 9 above, the Bank decided not to continue with the
abovementioned issuance process.
 11.
    
    ITEMS IN CUSTODY
 11.1.
    
    Portfolio Management
 a)
    
    On March 1, 1996, former Banco de Salta S.A. (which was absorbed by the
Bank) and the Government of the Province of Salta entered into an Agreement to
Manage the Loan Portfolio of Banco Provincial de Salta (in liquidation) related to
the nonfinancial private sector, whereby the Bank undertakes to perform all acts
necessary to manage such portfolio. In consideration thereof, the Province of Salta
recognizes to the Bank a percentage of the amounts effectively recovered.As of December 31, 2007 and 2006, the loans portfolio managed for principal and
interest, after application adjustments, amounted to 14,664 and 14,850, respectively.
  F - 42




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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) 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, 2007 and 2006, the loans portfolio managed amounts to 44,068 and
44,454, 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, 2007 and 2006, the loans portfolio managed amounts to 80,890 and
85,262, respectively.d)
    
    On August 19, 2002, ABN AMRO Bank N.V. Sucursal Argentina, as trustee, the
former Scotiabank Quilmes S.A., as trustor, Banco Comafi S.A., as collecting agent
and manager and the former Banco Bansud S.A. (currently Banco Macro S.A.), entered
into an agreement for the LAVERC financial trusts collection administration and
management, whereby former Banco Bansud S.A. will be in charge of the collection
management, custody, performance and any other task related to the corpus assets
booked in the branches of former Scotiabank Quilmes S.A. received.Through Resolution No. 523 of August 20, 2002, the Central Bank Board of Governors
under Section No. 35 bis II b), Financial Institutions Law provided for excluding
certain secured liabilities and the equivalent amount of certain assets from Scotiabank
Quilmes S.A. and it authorized the transfer of 35% of total excluded assets (including
certificates of participation in the LAVERC trust) and liabilities in favor of the
former Banco Bansud S.A. In addition, the abovementioned Resolution authorized the
former Banco Bansud S.A. to incorporate 36 branches that belonged to Scotiabank Quilmes
S.A. at the time of the transfer.As of December 31, 2007 and 2006, the portfolio managed by the Bank amounted to 136,810
and 153,661, respectively.e)
    
    On March 31, 2006, the Bank entered into a management and custody agreement
regarding the RETUC 1 trust loan portfolio.As of December 31, 2007, and 2006, the portfolio managed by the Bank amounted to 63,037
and 64,442, respectively.f)
    
    In addition, as of December 31, 2007 and 2006, the Bank had under its
management other portfolios for total amounts of 83,336 and 67,213, respectively.
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11.2.
    
    Mutual FundsAs of December 31, 2007, 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:
 Shareholders
    
    
    InvestmentsFund
    
    Shares of interest
    
    
    equity
    
    
    (a)Pionero Pesos
    
    
    366,603,211
    
    
    
    438,858
    
    
    
    295,629Pionero Renta Ahorro
    
    
    57,150,279
    
    
    
    65,331
    
    
    
    61,727Pionero Latam
    
    
    26,491,905
    
    
    
    102,152
    
    
    
    105,258Pionero Renta
    
    
    12,850,077
    
    
    
    24,263
    
    
    
    22,821Pionero FF
 Fideicomiso Financieros
    
    
    5,826,027
    
    
    
    5,895
    
    
    
    5,115Pionero Crecimiento
    
    
    2,181,022
    
    
    
    5,731
    
    
    
    5,457Pionero Global
    
    
    613,122
    
    
    
    656
    
    
    
    599Puente Hnos. Renta Fija
    
    
    77,120
    
    
    
    106
    
    
    
    88Galileo Event Driven F.C.I.
    
    
    18,160,165
    
    
    
    88,261
    
    
    
    108,191
 (a)
    
    Memorandum accounts
 Debit-balance accounts  Control  Other includes mainly
items in custody. Consequently, this account includes the above mentioned amounts related
to the mutual funds investment portfolios. 12.
    
    BANK DEPOSITS GUARANTEE INSURANCE SYSTEMLaw 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, subsidiary and
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 8.3544%
equity interest therein, according to the percentages set forth in Central Bank Communiqué B
9,229 of March 25, 2008.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 the 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, the 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 AGREEMENTSThe Bank is engaged in 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.The amounts recorded in the Banks consolidated financial statements for certificates of
participation and debt securities held in financial trusts under Other receivables from
financial intermediation  Other receivables not covered by debtors classification
regulations, net of allowances, amounted to:
  F - 44




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Financial trust
    
    12/31/2007
    
    
    12/31/2006Certificates of participation:Tucumán (a)
    
    
    134,474
    
    
    
    145,223Luján (b)
    
    
    43,530
    
    
    
    43,530TST & AF (c)
    
    
    33,611
    
    
    
    32,741San Isidro (d)
    
    
    16,782
    
    
    
    16,782Godoy Cruz (e)
    
    
    12,511
    
    
    
    11,055Agroprendas (f)
    
    
    
    
    
    
    11,142Personales II (f)
    
    
    
    
    
    
    6,969Other
    
    
    27,237
    
    
    
    15,073Subtotal certificates of participation
    
    
    268,145
    
    
    
    282,515
 Financial trust
    
    12/31/2007
    
    
    12/31/2006Debt securities:Tarjeta Shopping (g)
    
    
    29,989
    
    
    
    13,571Onext (h)
    
    
    14,524
    
    
    
    14,020Metroshop (g)
    
    
    12,425
    
    
    
    5,548Tarjeta Privada (g)
    
    
    10,060
    
    
    
    BG (i)
    
    
    
    
    
    
    50,401Agroprendas (f)
    
    
    
    
    
    
    2,575Personales II (f)
    
    
    
    
    
    
    3,594Others
    
    
    10,032
    
    
    
    424Subtotal debt securities
    
    
    77,030
    
    
    
    90,133Total interest in trusts
    
    
    345,175
    
    
    
    372,648
 (a)
    
    Tucumán TrustOn August 31, 2005, Federalia Sociedad Anónima de Finanzas, Maxifarm S.A. and
Gabrinel S.A., in their capacity as trustors, entered into a trust agreement to
create Tucumán trust (Fideicomiso Financiero Tucumán).The trustors assign to the Tucumán Trust the debt securities issued by the República
Trust (Fideicomiso República). The purpose of República Trust is the recoverability
of certain assets, mainly loans and real property of former Banco República.  F - 45




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BANCO MACRO S.A. AND SUBSIDIARIES
 On the other hand, the purpose of the Trust is to collect the debt securities issued
by the República Trust and pay off the certificates of participation issued by the
Tucumán Trust. To this end, Class A and Class B certificates of participation
were issued under Tucumán Trust. The Class B certificates of participation rights
are subordinated to the interest, principal and income of the Class A certificates
of participation.As of the date of these
consolidated financial statements, Banco Macro S.A. is the
beneficiary of 100% of the Class A certificates of participation.As per the latest accounting information available to date, corpus assets amounted to
about 91,348, which was mainly measured at cost basis. These corpus assets measured
at their recoverable value exceed the values booked by the Bank.This trust will end with the full settlement of the certificates of participation.(b)
    
    Luján TrustThe Luján Trust was created for the purpose of reducing the customers
uncollectibility risk of the credit assistance granted to Federalia S.A. de Finanzas.
To this end, on May 20, 2003, Federalia S.A. de Finanzas, in its capacity as
trustor, entered into a trust agreement to create Luján Trust (Fideicomiso
Financiero Luján).The trustor assigns to the Luján Trust a real estate and plots of land located in the
Province of Buenos Aires, Argentina.In addition, Nuevo A, A Prima (subordinated to the class Nuevo A) and class B
(subordinated to the Nuevo A and A Prima) certificates of participation were
issued under Luján Trust.As of the date of these
consolidated financial statements, Banco Macro S.A. is the
beneficiary of 100% of the certificates of participation.As per the latest accounting information available to date, corpus assets amounted to
about 49,404.This trust will end with the settlement of the certificates of participation and/or
the sale of corpus assets.(c)
    
    TST & AF TrustOn November 29, 2005, an agreement was executed to replace the trustee of Fideicomiso
Financiero TST & AF between Austral Financial LLC (formerly known as Tishman Speyer 
Citigroup Alternative Investments and Austral Financial LLC), in its capacity as
trustor, First Trust of New York, National Association, Permanent Representation
Office in Argentina, in its capacity as trustee, Sud Inversiones y Análisis S.A., in
its capacity as substitute trustee, and Austral Financial LLC, Proa del Puerto S.A.
and Macro Bank and Trust (subsidiary of Banco Macro S.A.) , in their capacity as
Beneficiaries, whereby the beneficiaries ratify the acceptance of the Trustees
resignation and appoint Sud Inversiones y Análisis S.A. as substitute trustee of the
trust.The purpose of the Trust is to develop a real estate project in Puerto Madero and the
subsequent sale thereof to settle the certificates of participation.As of the date of these consolidated financial statements, Banco Macro S.A. is
beneficiary of 33.3% of the certificates of participation issued under TST & AF
Trust.As per the latest accounting information available to date, corpus assets amounted to
about 210,353.This trust will terminate 30 years after the execution and/or full payment, sale or
any other disposition related to the project in full.  F - 46




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BANCO MACRO S.A. AND SUBSIDIARIES
 (d)
    
    San Isidro TrustThe purpose of the San Isidro Trust is the sale of the real property received to pay
for the certificates issued by the trust. This means that the main cash flow for the
repayment of the certificates of participation will come from the sale of the
property mentioned above.In consequence, on June 4, 2001, the former República S.A. de Finanzas, as trustor,
entered into a trust agreement to create San Isidro Trust (Fideicomiso Financiero
San Isidro).Under such agreement, the trustor assigned to the Trust a real estate located in the
San Isidro district, Province of Buenos Aires, in order to sell it and use the
proceeds to settle the certificates of participation issued by the Trust: class A,
class B (subordinated to the class A certificates of participation) and class C
for the remainder (subordinated to the class A and B).The certificates of participation were delivered to Banco Macro S.A. (the Bank holds
100% of the certificates issued by the Trust) for the repayment of loans previously
granted to República S.A. de Finanzas. This represents effectively a foreclosure
since the former owner of the assets relinquished all rights to the assets to the
trust.The Trust issued classes A, B and C certificates of participation which
represent the legal instrument whereby Banco Macro S.A. is entitled to receive the
cash flow established in the Trust Agreement.On May 10, 2007, a real estate development management offer was signed to carry out
the Real Property Project , based on a decision by the trusts beneficiaries in
conformity with the provisions set forth in the trust agreement.As per the latest accounting information available to date, corpus assets amounted to
about 25,689.This trust will end with the settlement of the certificates of participation and/or
the sale of corpus assets.(e)
    
    Godoy Cruz TrustOn August 29, 2006, Banco Finansur S.A., in its capacity as trustee, and Corporación
de los Andes S.A., in its capacity as trustor, entered into a trust agreement to
create Godoy Cruz Trust (Fideicomiso Financiero Godoy Cruz).The trustor assigns to the Godoy Cruz Trust real estate and plots of land located in
the Godoy Cruz department, San Francisco del Monte district, Province of Mendoza.In addition, class A, B (subordinated to the class A) and class C
(subordinated to classes A and B) certificates of participation were issued under
the trust.The purpose of Godoy Cruz Trust is to sell the assets mentioned above and to pay off
the certificates of participation with the proceeds thereof.As of the date of these consolidated financial
statements, Banco Macro S.A. is the beneficiary of 100% of the Class A certificates of participation.As per the latest accounting information available to date, corpus assets amounted to
about 22,552.This trust will end with the full settlement of the certificates of participation.(f)
    
    Agroprendas and Personales II TrustsSee note 13.2.  F - 47




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BANCO MACRO S.A. AND SUBSIDIARIES
 (g)
    
    Related to provisional certificates of participation
issued by the trusts in
the different series of financial trusts through a public offering entered into by
the Bank under underwriting agreements. Through those agreements, the Bank prepays
the price for the placement of
provisional securities to the trustor. Once final certificates and debt securities
are issued and placed in the market, the Bank recovers the reimbursements plus the
amount equal to the rate agreed upon.The abovementioned provisional certficates of participation were settled mostly as of
the date of issuance of these consolidated financial statements.(h)
    
    Onext TrustThe purpose of the Onext trust is to provide enough guarantees for the repayment of
the credit assistance granted by the Bank and Crediccop CL to Dalvian House S.A.,
Conjunto los Cerros S.A. and Dalvian Constructora S.A.Consequently, on May 19, 2005, Dalvian House S.A. and Conjunto los Cerros S.A., in
their capacity as trustors, entered into an agreement to create Onext Trust
(Fideicomiso Financiero Onext).The trustors assign to Onext Trust certain plots of lands. The trust has to pay off
the debt securities issued by the trust and distributing the remaining these corpus
assets, if any, among the holders of the certificates of participation in their
respective proportions.In addition, debt securities (total face value of 32,120) and certificates of
participation (subordinated to the payment of the debt securities issued by the
trust) were issued by the trust.As of the date of these consolidated financial statements, Banco Macro S.A. is
beneficiary of 50% of the debt securities issued under Fideicomiso Onext.As per the latest accounting information available to date, corpus assets amounted to
about 61,236.This trust will terminate upon the full settlement of debt securities.(i)
    
    BG TrustOn December 20, 2005, Equity Trust Company S.A., in its capacity as trustee and Banco
de Galicia y Buenos Aires S.A., in its capacity as trustor, entered into a trust
agreement to create BG Trust (Fideicomiso Financiero BG).The purpose of the trust is to collect the loans transferred by the trustor and
paying the issued securities. To this end, senior trust debt securities, junior trust
debt securities (subordinated to the senior trust debt securities) and certificates
of participation were issued.In addition, Banco Macro S.A. and Cargill Investments SCA executed put and call
options agreements related to Senior and Junior trust debt securities of the BG
financial trust carried by the Bank in its portfolio as of
December 31, 2006.On February 5, 2007, the Senior trust debt securities were amortized, and on November
26, 2007, Cargill Investments SCA exercised the purchase option in relation to the
Junior trust debt securities.   F - 48




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BANCO MACRO S.A. AND SUBSIDIARIES
   13.2.
    
    Trusts created using financial assets transferred by the Bank
   AssetsName
    
    Trustor
    
    Beneficiary
    
    ManagedFideicomiso Financiero Retuc 1
    
    Banco Macro S.A.
    
    Cooperativa de Vivienda Cons. y Créd. Ltda.
    
    
    2,300
    (1)
 (1)
    
    Relating to the corpus assets (loans), as per the latest accounting
information available to date. Furthermore, the Bank only administrates the
collection of trust assets.    13.3.
    
    Trusts as collateral for the loans granted by the Bank
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BANCO MACRO S.A. AND SUBSIDIARIES
  AssetsmanagedName
    
    Trustor
    
    (1)Fideicomiso Casino Club
    
    Casino Club S.A. y Casino Rosario S.A.
    
    
    17,500Sunny Land S.A. security and trust assignment
    
    Individuals not related to the Entity.
    
    
    16,230Fideicomiso en Garantía San Vicente
    
    Unider Internacional S.A
    
    
    4,534Fideicomiso CIYPSA
    
    Compañia de Inversiones y Participaciones S.A. (CIYPSA)
    
    
    4,145Fibra Papelera S.A. security and trust assignment
    
    Agrotécnica del Sur S.A. - and  individuals not related to the Entity.
    
    
    4,040Other(2)
    
    
    
    
    7,750Total
    
    
    
    
    54,199
 (1)
    
    The amounts are related to (i) the monthly average on a straight-line
basis of the funds provided by the debtors activities during the fiscal year ended
December 31, 2007, or (ii) the value of the specific assets managed (v.e. real
properties), as the case may be. In few cases, the bank has estimated the value
based on the amount pending amortization as of December 31, 2007, of the loans
granted.(2)
    
    Trusts related to the following trustors: Aeropuertos
del Neuquén S.A., Altos de la Calera S.A., Corredor Americano S.A., ENJASA, Grandaunt
Construcciones S.A., Horizonte S.A., La Veloz del Norte, Laboratorios Northia S.A.C.I.F.I.A.,
London Supply  S.A.C.I.F.I, Los Castillos S.A., Municipality of the City of Salta, Province of
Salta, Pulte S.R.L., Sucesión Yeizel Katz and Transporte Automotor Plaza S.A.
 13.4.
    
    Normal trust activities (The Bank acts as trustee).
    (a)
    
    Managing the trusts corpus assets to guarantee in favor of the beneficiary
the existence of the resources required to finance and/or pay certain obligations,
such as the payment of amortization installments regarding work or service
certificates, and the payment of invoices and fees stipulated in the related
agreements.(b)
    
    Promoting the production development of the private economic sector at a
provincial level.(c)
    
    In connection with public work concession agreement granting road
exploitation, management, keeping and maintenance.
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BANCO MACRO S.A. AND SUBSIDIARIES
  AssetsmanagedName
    
    (1)Fideicomiso Puerto Madero Siete
    
    
    122,439Fideicomiso para el Fortalecimiento y Saneamiento Municipal 
Banco Macro Bansud S.A. y Gobierno Provincial  Ley 5435
    
    
    87,800Fideicomiso Mypes II
    
    
    18,634Fideicomiso de Garantía SINERGIA
    
    
    12,520Fideicomiso Financiero Racing por Siempre I
    
    
    11,532Fideicomiso Saeta  Banco Macro Bansud S.A.
    
    
    8,398Fideicomiso No Financiero entre Banco Macro S.A. y la Secretaría.
de Estado de Economía de la Provincia de Jujuy
    
    
    6,676Fideicomiso IPSS
    
    
    6,275Other(2)
    
    
    13,105Total
    
    
    287,379
 (1)
    
    The amounts are related to (i) the monthly average on a straight-line
basis of the funds provided by the debtors activities during the fiscal year ended
December 31, 2007, or (ii) the value of the specific assets managed (v.e. real
properties), as the case may be.(2)
    
    Trusts related to the following trustors: Province of
Salta, Hospital Privado Centro Médico de Córdoba S.A., Conta Walter Mario S.R.L.,
Cooperativa de Agua Potable y Otros Servicios, ENJASA, Ministry of Treasury of the
Province of Salta and Ministry of Public Health of Salta, Municipality of the City
of Salta and Province of Misiones.
 14.
    
    COMPLIANCE WITH REGULATIONS TO ACT AS OVER-THE-COUNTER MARKET AGENT
  15.
    
    RESTRICTION ON EARNINGS DISTRIBUTION
 a)
    
    As established by Central Bank rules, 20% of net income for the year, plus/less
prior-year adjustments, shall be appropriated to legal reserve. Consequently, the
Shareholders Meeting, held on April 29, 2008 decided to apply 99,040 out of
unappropriated retained earnings to increase such legal reserve.b)
    
    Central Bank Communiqué A 4,152 dated June 2, 2004, lifted the suspension of
earnings distribution established by Communiqué A 3,574, but kept such distributions
subject to certain requirements provided therein and to prior authorization from the
Central Bank. In addition, through Communiqué A 4,589 and 4,591, the Central Bank
published the general procedure to approve the request for the authorization to distribute
earnings.c)
    
    As mentioned in note 10.a), under the agreements entered into with the FFCB, the Bank
may not distribute as cash dividends an amount exceeding 50% of liquid and realized
income. In addition, the Bank may not distribute as cash dividends an amount exceeding 25%
up to 50% of liquid and realized income, unless it redeems in advance subordinated
corporate bonds for an amount equivalent to 50% of the total dividends distributed in
cash.d)
    
    According to Law No. 25,063, the dividends distributed in cash or in kind will be
subject to a 35% income tax withholding as a single and final payment. Dividend payments
are subject to such withholding if they exceed the sum of: (i) the accumulated taxable
earnings accumulated as of the year-end immediately prior to the payment or distribution
date and (ii) certain tax-exempt income (such as dividend payments from other
corporations). This is applicable for tax years ended as from December 31, 1998.
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BANCO MACRO S.A. AND SUBSIDIARIES
 e)
    
    Furthermore, as set forth in Central Bank Communiqués mentioned in point b) above, in
order to determine the distributable amounts, the following should be deducted from
unappropriated retained earnings (i) the assets booked for minimum presumed income tax,
that as of December 31, 2007, totaled 23,287 (Banco Macro S.A. stand-alone basis) and (ii)
the positive difference between the book value and market value of the federal guaranteed
loans and securities in portfolio amounting to 12,059 (Banco Macro S.A. stand-alone
basis).f)
    
    On June 16, 2006, the Bank and Crédit Suisse First Boston International entered into
a loan agreement for USD 50,000,000, maturing on January 21, 2008, at LIBOR plus 1.95%.
Such agreement includes restrictions mainly related to the compliance with the payments
established. In the event of noncompliance with the agreement, the Bank will be unable to
distribute dividends either directly or indirectly through its subsidiaries. On January
18, 2008, an addendum was signed changing the expiration date to January 21, 2010, and
establishing a nominal interest rate of 8.55% p.a.g)
    
    In addition, as mentioned in note 4.4.l.2), the Bank capitalized under the
Intangible assets account amounts for differences resulting from compliance with court
orders related to the pesification of deposits. As established by such agency regarding
the distribution of earnings, these amounts should be deducted from Unappropriated
retained earnings as of year-end. As of December 31, 2007, such amount is 76,001 (net of
amortizations  Banco Macro S.A. stand-alone basis).h)
    
    As established in the issuance conditions for the 1st series of Class 1 Subordinated
Corporate Bonds mentioned in note 10.c.1), and as established by Central Bank Communiqué
A 4,576, the Shareholders Meeting held on April 29, 2008 decided to appropiate 46,083
out of Unappropriated retained earnings to set a special reserve for interest to be paid
upon the maturities taking place in June and December 2008.
   16.
    
    CLAIMS FROM THE AFIPDGI (FEDERAL PUBLIC REVENUE AGENCY  FEDERAL TAX BUREAU)
 a)
    
    On January 21, 2002, the former Banco Bansud S.A. requested from the above agency
that it be included in the debt consolidation, interest and fines exemption and
installment plan system provided by Presidential Decree No. 1,384/01 in order to settle
the tax payable that authorities had assessed ex-officio according to a resolution
notified on December 19, 2001. The abovementioned claim from tax authorities related to
income tax differences of the former Banco del Sud for the 1993 and 1994 tax years
grounded on having challenged certain methods applied that  in the former Banco Bansud
S.A.s opinion  were consistent with the guidelines set by the specific regulations.The amount that the Bank has requested to settle under the installment plan system is
10,780, which will be paid in 120 monthly installments. The amount in question was charged
to income for the fiscal year ended December 31, 2001. As of December 31, 2007, the
outstanding amount of 5,321 was recognized in the Other Liabilities account.b)
    
    The former Banco Bansud S.A., on February 18 and November 12, 2002, and the Bank, on
February 3, 2004, February 17, 2005, and February 17, 2006, filed appeals with the Federal
Administrative Tax Court against the AFIP  DGI resolutions that, holding to the position
mentioned in the preceding point, had objected the tax returns filed by the former Banco
Bansud S.A for tax years ended from June 30, 1995, through June 30, 1999, and the
irregular period ended December 31, 1999.On February 2, 2005, February 2, 2006, and November 22, 2006, the Bank filed the appeals
with the Federal Administrative Tax Court against the AFIP resolution that had objected to
the 1998, 1999 and 2000 income tax returns of the former Banco Macro S.A.
  F - 52




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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.
  17.
    
    ACCOUNTS IDENTIFYING COMPLIANCE OF THE MINIMUM CASH REQUIREMENT
  Banco Macro S.A.
    
    
    Nuevo Banco Bisel
    
    
    Banco delItem
    
    (stand-alone basis)
    
    
    S.A.
    
    
    Tucumán S.A.CashCash on hand
    
    
    547,966
    
    
    
    150,163
    
    
    
    92,217Amounts in Central Bank accounts
    
    
    1,597,354
    
    
    
    291,955
    
    
    
    133,154Other receivables from financial intermediationSpecial
guarantee accounts with the Central Bank
    
    
    152,101
    
    
    
    12,117
    
    
    
    22,168Total
    
    
    2,297,421
    
    
    
    454,235
    
    
    
    247,539
 18.
    
    RISK MANAGEMENT POLICIES
      Credit risk
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BANCO MACRO S.A. AND SUBSIDIARIES
        Operational risk
      
    
    The operational risk policy is established by the Head of Operating Risk and approved
by the Board of Directors.
    
    The general model design is based on the decentralized responsibility in managements,
the independence between the Head of Operating Risk and the other Managements and the
independent evaluation by Internal Audit.
    
    The application of consistent standards for the definition, evaluation, measurement,
monitoring and reporting of the operating risk through an integrated model for the
management of operating risk.
  F - 54




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BANCO MACRO S.A. AND SUBSIDIARIES
 
    
    The approval by each Management of specific policies and procedures.
    
    A reporting system with current and comprehensive information which will contain a
summary of operating risk events data, surveys of significant events and a self
evaluation of controls, among others, with each management being responsible for
reporting the required data.
   Market and Liquidity Risk
           1.
    
    Business Plan. This is the starting point to determine the cash needs of the current
year.
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BANCO MACRO S.A. AND SUBSIDIARIES
 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 the
business experiencing significant changes.3.
    
    Stress Tests. Used to quantify the impact of individual or systemic illiquidity
scenarios.4.
    
    Mismatch control. The Committee defines the amount of the accumulated mismatch that
is acceptable for each one of the tranches or gaps in the liquidity test, both in the
normal and stress scenarios.5.
    
    Assets and Liabilities Assumptions. In the process of constructing the liquidity
mismatches, whether in normal market or stress situations, assumptions are to be included
for the assets and liabilities of the balance sheet, taking into account the stability,
diversification, and historical renovation percentages.
    19.
    
    BALANCES IN FOREIGN CURRENCY
  As of December 31,2007
    
    
    2006ASSETSCash
    
    
    1,001,459
    
    
    
    1,029,317Government and private securities
    
    
    288,364
    
    
    
    247,857Loans
    
    
    1,598,906
    
    
    
    776,326Other receivables from financial intermediation
    
    
    236,249
    
    
    
    274,459Investments in other companies
    
    
    1,337
    
    
    
    1,619Assets under Financial Lease
    
    
    20,343Other Receivables
    
    
    22,641
    
    
    
    14,337Items pending allocation
    
    
    52Total
    
    
    3,169,351
    
    
    
    2,343,915LIABILITIESDeposits
    
    
    2,119,235
    
    
    
    1,591,905Other liabilities from financial intermediation
    
    
    984,008
    
    
    
    425,848Other Liabilities
    
    
    7,289
    
    
    
    3,823Subordinated Corporate Bonds
    
    
    488,192
    
    
    
    504,768Items pending allocation
    
    
    28
    
    
    
    246Total
    
    
    3,598,752
    
    
    
    2,526,590
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BANCO MACRO S.A. AND SUBSIDIARIES
 20.
    
    INTEREST-BEARING DEPOSITS WITH OTHER BANKS
 20.1.
    
    Included in Cash there are: (a) interest-bearing deposits with the Central Bank
totaling 2,022,430 and 1,551,369 as of December 31, 2007 and 2006, respectively and (b)
interest-bearing deposits in foreign banks totaling 224,179 and 431,387 as of December 31,
2007 and 2006, respectively.The interest-bearing deposits with the Central Bank yielded a nominal annual interest rate
of 2,55% as of December 31, 2007 and 2006, and the interest-bearing deposits in foreign
banks yielded a nominal annual interest rate of approximately 2.86% and 3.25% as of
December 31, 2007 and December 31, 2006, respectively.20.2.
    
    Included in Other Receivables from Financial Transactions there are other
interest-bearing deposits with Central Bank totaling 180,686 and 115,682 as of December
31, 2007 and December 31, 2006, respectively.
 21.
    
    GOVERNMENT AND PRIVATE SECURITIES
 As of December 31,2007
    
    
    2006GOVERNMENT SECURITIESHoldings for trading or intermediationIn pesos:Consolidation bonds of social security payables in pesos
    
    
    70,670
    
    
    
    4,151Federal government bonds  maturity 2007, 2008, 2013 and 2014
    
    
    13,840
    
    
    
    104,502Consolidation bonds
    
    
    10,236
    
    
    
    1,971Secured bonds Decree 1,579/02
    
    
    38,299
    
    
    
    36,414Discount bonds
    
    
    18,746
    
    
    
    4,143Par bonds
    
    
    1,590
    
    
    
    439Quasi-Par Securities  maturity 2045
    
    
    
    
    
    
    2,920Province of Tucumán bonds
    
    
    2,828
    
    
    
    1,905GDP-Related Securities  maturity 2035
    
    
    1,109
    
    
    
    2,337Other
    
    
    197
    
    
    
    298Subtotal holdings for trading or intermediation
 In pesos
    
    
    157,515
    
    
    
    159,080In foreign currency:Federal government bonds in USD  maturity 2012 and 2013
    
    
    145,269
    
    
    
    111,263Province of Mendoza bonds un USD  maturity 2018
    
    
    7,533
    
    
    
    Argentine Government bonds in USD at 7%  maturity 2017
 Bonar X
    
    
    45,954
    
    
    
    Treasury Bills in USD  maturity 2007 and 2008
    
    
    
    
    
    
    31,276Par bonds in USD
    
    
    368
    
    
    
    280Argentine Government bonds in USD at 7%  maturity 2011
 Bonar V
    
    
    1,462
    
    
    
    2,128Other
    
    
    312
    
    
    
    38Subtotal holding for trading or intermediation  In
foreign currency
    
    
    200,898
    
    
    
    144,985Subtotal holding for trading or intermediation
    
    
    358,413
    
    
    
    304,065
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BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31,2007
    
    
    2006GOVERNMENT SECURITIES (cont.)Unlisted government securitiesIn pesos:Federal goverment bonds  maturity 2013
    
    
    11,987
    
    
    
    13,254Other
    
    
    38
    
    
    
   18Subtotal unlisted government securities
 In pesos
    
    
    12,025
    
    
    
    13,272Unlisted government securitiesIn foreign currency:Province of Tucumán bonds in USD  maturity 2015
    
    
    8,112
    
    
    
   169Subtotal unlisted government securities
 In foreign currency
    
    
    8,112
    
    
    
    169Subtotal unlisted government securities
    
    
    20,137
    
    
    
    13,441Instruments issued by the Central Bank of ArgentinaIn pesos:Listed Central Bank bills (LEBAC)
    
    
    30,299
    
    
    
    32,463Listed Central Bank notes (NOBAC)
    
    
    3,447,947
    
    
    
    2,754,556Subtotal instruments issued by Central Bank
    
    
    3,478,246
    
    
    
    2,787,019Total government securities
    
    
    3,856,796
    
    
    
    3,104,525PRIVATE SECURITIESInvestments in listed private securitiesIn pesos:Shares
    
    
    2,971
    
    
    
    2,548Debt securities in financial trusts
    
    
    
    
    
    
    1,035Mutual funds
    
    
    19,424
    
    
    
    11,437Subtotal listed private securities  In pesos
    
    
    22,395
    
    
    
    15,020In foreign currency:Shares
    
    
    5,681
    
    
    
    5,032Corporate bonds
    
    
    23,595
    
    
    
    80,482Commercial Paper
    
    
    30,402
    
    
    
    Mutual funds
    
    
    11,883
    
    
    
    17,925Subtotal listed private securities  In foreign currency
    
    
    71,561
    
    
    
    103,439Total private securities
    
    
    93,956
    
    
    
    118,459Total government and private securities, before allowances
    
    
    3,950,752
    
    
    
    3,222,984Allowances
    
    
    (27
    )
    
    
    (29
    )Total government and private securities
    
    
    3,950,725
    
    
    
    3,222,955
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BANCO MACRO S.A. AND SUBSIDIARIES
 MaturingAfter 5After 1 year
    
    
    years butbut within 5
    
    
    within 10
    
    
    After 10Within 1 year
    
    
    years
    
    
    years
    
    
    years
    
    
    TotalBook value(in thousands of pesos)GOVERMENT SECURITIESIn pesos:Holding for trading or intermediation
    
    
    33,560
    
    
    
    63,420
    
    
    
    36,400
    
    
    
    24,135
    
    
    
    157,515Consolidation bonds of social
security payables in pesos
    
    
    28,299
    
    
    
    38,808
    
    
    
    3,563
    
    
    
    
    
    
    
    70,670Federal government bonds 
maturity 2008 and 2014
    
    
    1,138
    
    
    
    7,489
    
    
    
    5,213
    
    
    
    
    
    
    
    13,840Consolidation bonds
    
    
    1,786
    
    
    
    4,664
    
    
    
    2,105
    
    
    
    1,681
    
    
    
    10,236Secured bonds Decree 1,579/02
    
    
    2,127
    
    
    
    11,525
    
    
    
    23,707
    
    
    
    940
    
    
    
    38,299Par bond
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,590
    
    
    
    1,590GDP- Related
Securities   maturity 2035
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,109
    
    
    
    1,109Province of Tucumán bonds
    
    
    158
    
    
    
    851
    
    
    
    1,750
    
    
    
    69
    
    
    
    2,828Discount bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,746
    
    
    
    18,746Other
    
    
    52
    
    
    
    83
    
    
    
    62
    
    
    
    
    
    
    
    197Unlisted government securities
    
    
    4,033
    
    
    
    7,992
    
    
    
    
    
    
    
    
    
    
    
    12,025Federal government bonds 
maturity 2013
    
    
    3,996
    
    
    
    7,991
    
    
    
    
    
    
    
    
    
    
    
    11,987Other
    
    
    37
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    38Instruments issued by the Central
Bank of Argentina
    
    
    2,941,136
    
    
    
    537,110
    
    
    
    
    
    
    
    
    
    
    
    3,478,246Listed Central Bank bills (LEBAC)
    
    
    21,694
    
    
    
    8,605
    
    
    
    
    
    
    
    
    
    
    
    30,299Listed Central Bank notes (NOBAC)
    
    
    2,919,442
    
    
    
    528,505
    
    
    
    
    
    
    
    
    
    
    
    3,447,947Total government securities in pesos
    
    
    2,978,729
    
    
    
    608,522
    
    
    
    36,400
    
    
    
    24,135
    
    
    
    3,647,786
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BANCO MACRO S.A. AND SUBSIDIARIES
 MaturingAfter 5After 1 year
    
    
    years butbut within 5
    
    
    within 10
    
    
    After 10Within 1 year
    
    
    years
    
    
    years
    
    
    Years
    
    
    TotalBook value(in thousands of pesos)In foreign currency:Holdings for trading or intermediation
    
    
    21,189
    
    
    
    86,520
    
    
    
    91,624
    
    
    
    1,565
    
    
    
    200,898Federal
government bonds  in USD  maturity 2012 and 2013
    
    
    20,674
    
    
    
    82,697
    
    
    
    41,898
    
    
    
    
    
    
    
    145,269Argentine Government bonds in USD at
7%-maturity 2017-
Bonar X
    
    
    
    
    
    
    
    
    
    
    45,954
    
    
    
    
    
    
    
    45,954Argentine Government bonds in USD at
7%-maturity 2011-
Bonar V
    
    
    
    
    
    
    1,462
    
    
    
    
    
    
    
    
    
    
    
    1,462Par bonds in USD
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    368
    
    
    
    368Province of
Mendoza bonds in USD   maturity 2018
    
    
    515
    
    
    
    2,361
    
    
    
    3,772
    
    
    
    885
    
    
    
    7,533Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    312
    
    
    
    312Unlisted government securities
    
    
    2,704
    
    
    
    5,408
    
    
    
    
    
    
    
    
    
    
    
    8,112Province of Tucumán bonds in USD 
maturity 2015
    
    
    2,704
    
    
    
    5,408
    
    
    
    
    
    
    
    
    
    
    
    8,112Total government securities in
foreign currency
    
    
    23,893
    
    
    
    91,928
    
    
    
    91,624
    
    
    
    1,565
    
    
    
    209,010Total government securities
    
    
    3,002,622
    
    
    
    700,450
    
    
    
    128,024
    
    
    
    25,700
    
    
    
    3,856,796
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BANCO MACRO S.A. AND SUBSIDIARIES
 MaturingAfter 5After 1 year
    
    
    years butbut within 5
    
    
    within 10
    
    
    After 10Within 1 year
    
    
    years
    
    
    years
    
    
    years
    
    
    TotalBook value(in thousands of pesos)PRIVATE SECURITIESInvestments in listed private securitiesIn Pesos:Shares
    
    
    2,971
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,971Mutual Funds
    
    
    19,424
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,424Subtotal listed private securities  In
pesos
    
    
    22,395
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,395In foreign currency:Shares
    
    
    5,681
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,681Corporate bonds
    
    
    17,359
    
    
    
    6,236
    
    
    
    
    
    
    
    
    
    
    
    23,595Commercial Paper
    
    
    30,402
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,402Mutual Funds
    
    
    11,883
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,883Subtotal listed private securitiesIn
foreign currency
    
    
    65,325
    
    
    
    6,236
    
    
    
    
    
    
    
    
    
    
    
    71,561Total private securities
    
    
    87,720
    
    
    
    6,236
    
    
    
    
    
    
    
    
    
    
    
    93,956Total government and private
securities, before allowances
    
    
    3,090,342
    
    
    
    706,686
    
    
    
    128,024
    
    
    
    25,700
    
    
    
    3,950,752Allowances
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (27
    )Total government and
private securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,950,725
 22.
    
    LOANS
  a.
    
    Non-financial government sector: loans to the government sector, excluding government
owned financial institutions.b.
    
    Financial sector: mainly, refers to short-term loans to financial institutions.c.
    
    Non financial private sector and foreign residents: loans given to the private sector
(excluding financial institutions) and residents outside Argentina.
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BANCO MACRO S.A. AND SUBSIDIARIES
  As of December 31,2007
    
    
    2006Non-financial government sector
    
    
    732,481
    
    
    
    774,273Financial sector
    
    
    161,702
    
    
    
    436,930Non-financial private sector and
foreign residentsCommercial- With Senior A guarantees
    
    
    106,763
    
    
    
    28,553- With Senior B guarantees
    
    
    357,422
    
    
    
    257,509- Without Senior guarantees
    
    
    3,405,792
    
    
    
    2,122,067Consumer- With Senior A guarantees
    
    
    16,637
    
    
    
    17,557- With Senior B guarantees
    
    
    750,974
    
    
    
    623,065- Without Senior guarantees
    
    
    4,698,068
    
    
    
    2,475,732Less: Allowance
    
    
    (220,422
    )
    
    
    (208,581
    )Total loans, net of allowance
    
    
    10,009,417
    
    
    
    6,527,105
     2007
    
    
    2006Argentina
    
    
    10,150,371
    
    
    
    6,687,200United States of America
    
    
    48,943
    
    
    
    15,454England
    
    
    15,781
    
    
    
    Uruguay
    
    
    13,111
    
    
    
    7,931Thailand
    
    
    687
    
    
    
    Canada
    
    
    392
    
    
    
    Denmark
    
    
    224
    
    
    
    Australia
    
    
    111
    
    
    
    444Chile
    
    
    86
    
    
    
    13Brazil
    
    
    55
    
    
    
    Bahamas
    
    
    46
    
    
    
    France
    
    
    22
    
    
    
    481Peru
    
    
    9
    
    
    
    Spain
    
    
    1
    
    
    
    Switzerland
    
    
    
    
    
    
    15,659United Kingdom
    
    
    
    
    
    
    7,766Ecuador
    
    
    
    
    
    
    480Venezuela
    
    
    
    
    
    
    258Less: Allowance
    
    
    (220,422
    )
    
    
    (208,581
    )Total loans, net of allowances
    
    
    10,009,417
    
    
    
    6,527,105
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BANCO MACRO S.A. AND SUBSIDIARIES
  Economic Activity
    
    2007
    
    
    2006Retail loans
    
    
    3,410,359
    
    
    
    1,719,736Agricultural
livestock  Foresty  Fishing  Mining  Hunting
    
    
    1,050,102
    
    
    
    650,405Other services
    
    
    970,585
    
    
    
    474,325Governmental services
    
    
    861,852
    
    
    
    844,814Other
    
    
    851,836
    
    
    
    288,241Retail and consumer products
    
    
    703,063
    
    
    
    550,359Foodstuff and beverages
    
    
    700,917
    
    
    
    537,905Construction
    
    
    411,725
    
    
    
    320,484Financial Services
    
    
    408,002
    
    
    
    593,423Chemicals
    
    
    340,450
    
    
    
    300,429Transportation, storage and communications
    
    
    181,646
    
    
    
    195,094Mass production of products
    
    
    166,169
    
    
    
    147,127Electricity, oil, water
    
    
    74,256
    
    
    
    31,061Real estate, business and leases
    
    
    59,512
    
    
    
    39,087Hotels and restaurants
    
    
    39,365
    
    
    
    43,196Total loans
    
    
    10,229,839
    
    
    
    6,735,686Less: Allowance
    
    
    (220,422
    )
    
    
    (208,581
    )Total loans, net of Allowance
    
    
    10,009,417
    
    
    
    6,527,105
 23.
    
    ALLOWANCES FOR LOAN LOSSES
  As of December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    208,581
    
    
    
    247,532
    
    
    
    225,340Provision for loan losses (a)(b)
    
    
    93,498
    
    
    
    60,102
    
    
    
    61,008Allowances for loan losses from
incorporation of assets and liabilities of
Banco Empresario de Tucumán Cooperativo
Limitado
    
    
    
    
    
    
    
    
    
    
    74,775Allowances for loan losses from
acquisition of Nuevo Banco del Tucumán
S.A.
    
    
    
    
    
    
    13,993
    
    
    
    Allowances for loan losses from
acquisition of Nuevo Nuevo Banco Bisel
S.A.
    
    
    
    
    
    
    28,443
    
    
    
    Allowances for loan losses for purchased
loans and recovered loans
    
    
    
    
    
    
    
    
    
    
    6,262Write Offs
    
    
    (38,199
    )
    
    
    (132,926
    )
    
    
    (60,929
    )Reversals (b)
    
    
    (43,458
    )
    
    
    (8,563
    )
    
    
    (58,924
    )Balance at the end of the fiscal year (c)
    
    
    220,422
    
    
    
    208,581
    
    
    
    247,532
 (a)
    
    As of December 31, 2007, the amount of provision for loan losses disclosed in
the statements of Income, includes above amounts, and, mainly, the provision for other
receivables for financial intermediation (see note 27).(b)
    
    As of December 31, 2007, as disclosed in note 31,
under SEC requirements, the amount of loan loss provision includes above amounts less recovered
loans of 88,441.(c)
    
    As of December 31, 2007, as disclosed in note 31,
under SEC requirements, the amount of allowance for loan losses includes the allowance for
assets subject to financial lease (see note 27).
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BANCO MACRO S.A. AND SUBSIDIARIES
 24.
    
    OTHER RECEIVABLES FROM FINANCIAL INTERMEDIATION
  As of December 31,Description
    
    2007
    
    
    2006Without preferred guarantees
    
    
    1,433,234
    
    
    
    1,092,893Allowances
    
    
    (206,939
    )
    
    
    (178,319
    )1,226,295
    
    
    
    914,574
  As of December 31,Description
    
    2007
    
    
    2006Corporate bonds  Unlisted
    
    
    44,257
    
    
    
    12,661Debt
securities in financial trusts  Unlisted
    
    
    77,030
    
    
    
    90,133Certificates
of participation in financial trusts  Unlisted (1)
    
    
    471,942
    
    
    
    451,612Total investments in unlisted private securities
    
    
    593,229
    
    
    
    554,406
 (1)
    
    As of December 31, 2007
and 2006, the Bank booked allowances for impairment in value
amounting to 203,797 and 169,097, respectively.  After 5After 1 year
    
    
    years butWithin 1
    
    
    but within 5
    
    
    within 10
    
    
    After 10
    
    
    Withoutyear
    
    
    years
    
    
    years
    
    
    years
    
    
    due date
    
    
    TotalCorporate bonds  Unlisted
    
    
    5,342
    
    
    
    38,457
    
    
    
    199
    
    
    
    69
    
    
    
    190
    
    
    
    44,257Debt securities in
financial trusts  Unlisted
    
    
    68,088
    
    
    
    8,942
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    77,030Certificates of
participation in financial trusts  Unlisted
    
    
    45,258
    
    
    
    175,915
    
    
    
    
    
    
    
    16,101
    
    
    
    234,668
    (1)
    
    
    471,942Total investments in
unlisted private securities
    
    
    118,688
    
    
    
    223,314
    
    
    
    199
    
    
    
    16,170
    
    
    
    234,858
    
    
    
    593,229
 (1)
    
    As of December 31, 2007 the Bank booked
allowances for impairment in value amounting to 203,797.   F - 64




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
  As of December 31,Description
    
    2007
    
    
    2006Amounts receivable from spot and forward sales pending settlementReceivables from repurchase agreements of government securities
    
    
    238,481
    
    
    
    69,777Receivable from spot sales of government and private securities
pending settlement
    
    
    174,614
    
    
    
    48,020Receivables from forward sales of government securities
    
    
    4,508
    
    
    
    2,856Receivables
from spot sales of foreign currency settlement
    
    
    10,978
    
    
    
    708Receivables from other forward sales
    
    
    
    
    
    
    92,244428,581
    
    
    
    213,605Securities and foreign currency receivable from spot and forward
purchases pending settlementForward purchases of securities under repurchase agreements
    
    
    15,143
    
    
    
    102,293Spot purchases of government and private securities pending settlement
    
    
    107,354
    
    
    
    31,553Spot
purchases of foreign currency pending settlement
    
    
    23,580
    
    
    
    3,070Other spot purchases
    
    
    3,198
    
    
    
    3,801149,275
    
    
    
    140,717Amounts payable for spot and forward purchases pending settlementPayables for spot purchases of foreign currency pending settlement and
forward purchases of foreign currency
    
    
    23,567
    
    
    
    3,071Payables for forward purchases of securities under repurchase agreements
    
    
    13,650
    
    
    
    57,893Payables for spot purchases of government securities pending settlement
    
    
    95,655
    
    
    
    29,074Payables under repo transactions
    
    
    25,893
    
    
    
    42,391Payable for spot purchases of government and private securities
awaiting settlement
    
    
    
    
    
    
    5158,765
    
    
    
    132,434
  F - 65




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BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31,Description
    
    2007
    
    
    2006Securities and foreign currency to be delivered under spot and
forward sales pending settlementForward sales of government securities under repurchase agreements
    
    
    276,728
    
    
    
    89,914Forward sales of government securities
    
    
    4,884
    
    
    
    4,150Forward
sales of foreign currency pending settlement
    
    
    10,981
    
    
    
    708Spot sales of government and private securities pending settlement
    
    
    152,834
    
    
    
    38,666Other forward sales
    
    
    372
    
    
    
    83,628445,799
    
    
    
    217,066
 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 value2007
    
    
    2006Assets
    
    
    149,275
    
    
    
    140,717Liabilities
    
    
    445,799
    
    
    
    217,066
 Premiums on these instruments have been included in the Financial income and Financial
expense captions of the consolidated statement of income of each year.
 25.
    
    BANK PREMISES AND EQUIPMENT AND OTHER ASSETS
 25.1
    
    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 31,Estimateduseful lifeDescription
    
    (years)
    
    
    2007
    
    
    2006Buildings
    
    
    50
    
    
    
    310,946
    
    
    
    307,415Furniture and facilities
    
    
    10
    
    
    
    79,397
    
    
    
    68,317Machinery and equipment
    
    
    5
    
    
    
    314,820
    
    
    
    272,845Vehicles
    
    
    5
    
    
    
    53,930
    
    
    
    32,781Other
    
    
    
    
    
    
    2,085
    
    
    
    2,084Accumulated depreciation
    
    
    
    
    
    
    (388,067
    )
    
    
    (347,191
    )Total
    
    
    
    
    
    
    373,111
    
    
    
    336,251
 Depreciation expense was 42,723, 29,230 and 19,218 as of December 31, 2007, 2006 and 2005
respectively.
  F - 66




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BANCO MACRO S.A. AND SUBSIDIARIES
 25.2
    
    Other assetsOther assets consisted of the following as of December 31, 2007 and 2006:
 As of December 31,Estimateduseful lifeDescription
    
    (years)
    
    
    2007
    
    
    2006Works in progress
    
    
    
    
    
    
    55,533
    
    
    
    27,357Works of art
    
    
    
    
    
    
    1,207
    
    
    
    1,203Prepayments for the purchase of assets
    
    
    
    
    
    
    157
    
    
    
    3,945Foreclosed assets
    
    
    
    
    
    
    38,114
    
    
    
    42,455Leased buildings
    
    
    50
    
    
    
    6,883
    
    
    
    13,880Stationery and office supplies
    
    
    
    
    
    
    4,165
    
    
    
    1,651Other assets (1)
    
    
    50
    
    
    
    115,103
    
    
    
    127,095Accumulated depreciation
    
    
    
    
    
    
    (14,582
    )
    
    
    (14,821
    )Total
    
    
    
    
    
    
    206,580
    
    
    
    202,765
 (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 6 months from the
acquisition. Depreciation expense was 1,598, 1,748 and 2,024 at December 31, 2007, 2006, and 2005
respectively.25.3
    
    Operating LeasesAs of December 31, 2007, the Banks branch network includes certain branches that were
located in properties leased to the Bank (some of which are renewable for periods between
2 and 6 years).The estimated future lease payments in connection with these properties are as follows:
 Fiscal year end
    
    
    
    
    Amounts2008
    
    
    
    
    
    15,5942009
    
    
    
    
    
    11,1692010
    
    
    
    
    
    8,6002011
    
    
    
    
    
    4,4812012
    
    
    
    
    
    2,5602013 and after
    
    
    
    
    6,314Total
    
    
    
    

    48,718
 As of December 31, 2007, 2006 and 2005, rental expenses amounted to 18,686, 14,123 and
7,249, respectively. As of such dates, there are no contractual obligations with separate
amounts of minimum rentals, contingent rentals, and sublease rental income.
  F - 67




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 26.
    
    INTANGIBLE ASSETS
 26.1.
    
    Goodwill:As of December 31, 2007 and 2006 goodwill breakdown is as follows:
 As of December 31,Estimateduseful lifefrompaymentDescription
    
    (years)
    
    
    2007
    
    
    2006Goodwill for the purchase of Banco de Jujuy S.A., net of accumulated
amortization of 8,214 as of December 31, 2007 (a)
    
    
    6
    
    
    
    8
    
    
    
    826Goodwill for the purchase of Banco del
Tucumán S.A., net of accumulated
amortization of 3,021 as of December
31, 2007 (b)
    
    
    10
    
    
    
    15,222
    
    
    
    17,048Goodwill for the purchase of Nuevo
Banco Bisel S.A., net of accumulated
amortization of 9,356 as of December
31, 2007 (c)
    
    
    10
    
    
    
    56,686
    
    
    
    63,290Total
    
    
    
    
    
    
    71,916
    
    
    
    81,164
 Amortization expense on goodwill was 9,250, 4,766 and 839, as of December 31, 2007, 2006
and 2005.
 (a)
    
    On January 12, 1998, Banco Macro S.A. acquired 80% of the capital stock of
Banco de Jujuy in the amount of Ps. 5.1 million. The assets transferred amounted to
Ps. 30 million and the liabilities assumed amounted to Ps. 28 million (historical
values).Under Central Bank Rules, this transaction resulted in Banco Macros positive goodwill
amounting to Ps. 3.5 million, which is amortized in seven years and no impairment is
required.(b)
    
    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. suscribed
the total increase, thus increasing its overall interest in Banco del Tucumán S.A. to
89.93%.Under Central Bank Rules, this transaction resulted in Banco Macros positive goodwill
amounting to 18,242, which is amortized in ten years and no impairment is required.(c)
    
    On August 11, 2006, the Bank acquired 92.73% of the capital stock of Nuevo
Banco Bisel in the amount of 19,509. The assets transferred amounted to 1,824,644 and
the liabilities assumed amounted to 1,804,534.Under Central Bank rules, as
a result of the acquisition, the Bank booked a positive
goodwill amounting to 66,042, which is amortized in ten years and no impairment is
required.
  F - 68




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 
 26.2.
    
    Organization and development costs:As of December 31, 2007 and 2006, the organization and development costs breakdown is as
follows:
 As of December 31,Estimateduseful lifeDescription
    
    (years)
    
    
    2007
    
    
    2006Differences due to courts orders  non
deductibles for the determination of the
computable equity
    
    
    5
    
    
    
    116,464
    
    
    
    74,745Cost from information technology projects
    
    
    5
    
    
    
    63,669
    
    
    
    31,511Organizational cost
    
    
    5
    
    
    
    8,313
    
    
    
    699Other capitalized cost
    
    
    5
    
    
    
    2,615
    
    
    
    3,060Total
    
    
    
    
    
    
    191,061
    
    
    
    110,015
 Amortization expense was 47,202, 32,740 and 26,688 as of December 31, 2007, 2006 and 2005,
respectively.
 Intangible assets changed as follows during fiscal years ended December 31, 2007, 2006 and
2005:
 Fiscal year ended December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    191,179
    
    
    
    70,091
    
    
    
    81,531Additions
    
    
    128,250
    
    
    
    158,623
    
    
    
    16,148Decreases
    
    
    
    
    
    
    (29
    )
    
    
    (61
    )Amortization expense
    
    
    (56,452
    )
    
    
    (37,506
    )
    
    
    (27,527
    )Balance at the end of the fiscal year
    
    
    262,977
    
    
    
    191,179
    
    
    
    70,091
 27.
    
    OTHER ALLOWANCES AND PROVISIONSThe activity of the following allowances deducted from assets or included in liabilities in
accordance with Central Bank rules are as follows:Government and private securitiesRecorded to cover possible impairment risk arising out of government securities.
 As of December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    29
    
    
    
    512
    
    
    
    2,471Allowances for government and private securities losses
    
    
    
    
    
    
    
    
    
    
    512Write off
    
    
    
    
    
    
    (474
    )
    
    
    (2,471
    )Reversals
    
    
    (2
    )
    
    
    (9
    )
    
    
    Balance at the end of the fiscal year
    
    
    27
    
    
    
    29
    
    
    
    512
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Other receivables from financial intermediationRecorded in compliance with the provision of Communication A 2950, as supplemented, of the
Central Bank, taking into account notes 4.4.f) and h.3).
 As of December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    178,319
    
    
    
    27,600
    
    
    
    107,530Allowances for Other receivables for financial intermediation from
acquisition of Banco del Tucumán S.A.
    
    
    
    
    
    
    125
    
    
    
    Allowances for Other receivables for financial intermediation from
acquisition of Nuevo Banco Bisel S.A.
    
    
    
    
    
    
    164,327
    
    
    
    Provision for other receivables for financial intermediation losses
    
    
    38,583
    
    
    
    9,129
    
    
    
    9,958Write off
    
    
    (5,902
    )
    
    
    (6,688
    )
    
    
    (78,789
    )Reversals
    
    
    (4,061
    )
    
    
    (16,174
    )
    
    
    (11,099
    )Balance at the end of the fiscal year
    
    
    206,939
    
    
    
    178,319
    
    
    
    27,600
 Assets subject to financial leaseRecorded in compliance with the provision of Communication A 2950, as supplemented, of the
Central Bank, taking into account note 4.4.f).
 As of December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    3,489
    
    
    
    1,470
    
    
    
    609Allowances for Assets subjects to financial
leases from acquisition of Banco del Tucumán S.A.
    
    
    
    
    
    
    226
    
    
    
    Allowances for Assets subjects to financial
leases from acquisition of Nuevo Banco Bisel
S.A.
    
    
    
    
    
    
    299
    
    
    
    Provision for assets subject to financial lease
    
    
    1,557
    
    
    
    1,529
    
    
    
    875Write off
    
    
    
    
    
    
    (19
    )
    
    
    (14
    )Reversals (1)
    
    
    (148
    )
    
    
    (16
    )
    
    
    Balance at the end of the fiscal year(1)
    
    
    4,898
    
    
    
    3,489
    
    
    
    1,470
 (1)
    
    Under U.S. SEC requirements, they were included in Assets  Allowance for loans losses. Investment in other companiesRecorded to cover possible impairment risk arising from investments in other companies.
 As of December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    1,172
    
    
    
    1,304
    
    
    
    719Provision for investment in other companies losses
    
    
    85
    
    
    
    18
    
    
    
    1,049Write off
    
    
    (11
    )
    
    
    
    
    
    
    (167
    )Reversals
    
    
    (549
    )
    
    
    (150
    )
    
    
    (297
    )Balance at the end of the fiscal year
    
    
    697
    
    
    
    1,172
    
    
    
    1,304
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Other receivables
 Following is a summary of amounts recorded to cover collectibility risks of other receivables.
 As of December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    36,153
    
    
    
    18,246
    
    
    
    6,201Allowances for Other receivables from
acquisition of Banco del Tucumán S.A.
    
    
    
    
    
    
    1
    
    
    
    Allowances for Other receivables from
acquisition of Nuevo Banco Bisel S.A.
    
    
    
    
    
    
    18,892
    
    
    
    Provision for other receivables losses
    
    
    1,936
    
    
    
    8,175
    
    
    
    13,220Write off
    
    
    (3,959
    )
    
    
    (8,694
    )
    
    
    (1,098
    )Reversals
    
    
    (7,096
    )
    
    
    (467
    )
    
    
    (77
    )Balance at the end of the fiscal year
    
    
    27,034
    
    
    
    36,153
    
    
    
    18,246Total of allowances
    
    
    239,595
    
    
    
    219,162
    
    
    
    49,132
 Provisions  Contingencies and Commitments
 Following is a roll-forward of the allowance 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 SFAS (Statements of Financial Accounting
Standards) No. 5.
 As of December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    1,674
    
    
    
    2,076
    
    
    
    3,120Provision for contingent commitments losses
    
    
    55
    
    
    
    7
    
    
    
    1,692Write off
    
    
    
    
    
    
    
    
    
    
    (1,043
    )Reversals
    
    
    (69
    )
    
    
    (409
    )
    
    
    (1,693
    )Balance at the end of the fiscal year
    
    
    1,660
    
    
    
    1,674
    
    
    
    2,076
 Provisions  Negative Goodwill
 Following is the roll forward of the amounts 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.:
 As of December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    483
    
    
    
    73,595
    
    
    
    146,707Amortization
    
    
    
    
    
    
    (73,112
    )
    
    
    (73,112
    )Balance at the end of the fiscal year
    
    
    483
    
    
    
    483
    
    
    
    73,595
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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Provisions  Other loss contingencies
 Principally 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 SFAS No. 5.
 As of December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    75,085
    
    
    
    102,479
    
    
    
    75,872Provision for other contingent losses
    
    
    23,638
    
    
    
    20,087
    
    
    
    37,440Provision for other contingent losses from
acquisition of Banco del Tucumán S.A.
    
    
    
    
    
    
    994
    
    
    
    Provision for other contingent losses from
acquisition of Nuevo Banco Bisel S.A.
    
    
    
    
    
    
    11,790
    
    
    
    Provision for other contingent losses from
incorporation of assets and liabilities of
Banco Empresario de Tucumán Cooperativo
Limitado
    
    
    
    
    
    
    
    
    
    
    6,796Write off
    
    
    (18,728
    )
    
    
    (58,213
    )
    
    
    (13,347
    )Reversals
    
    
    (1,951
    )
    
    
    (2,052
    )
    
    
    (4,282
    )Balance at the end of the fiscal year
    
    
    78,044
    
    
    
    75,085
    
    
    
    102,479
 Provisions  For severance pay
 As of December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    496
    
    
    
    
    
    
    
    Provision for severance pay
    
    
    
    
    
    
    1,000
    
    
    
    Write off
    
    
    (496
    )
    
    
    (504
    )
    
    
    Balance at the end of the fiscal year
    
    
    
    
    
    
    496
    
    
    
    
 Provision  Difference from deposit dollarization (1)
 As of December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    27,132
    
    
    
    
    
    
    
    Provision for difference from deposit dollarization
    
    
    35,882
    
    
    
    27,132
    
    
    
    Provision from court deposits dollarization
    
    
    21,678
    
    
    
    
    
    
    
    Write off
    
    
    (532
    )
    
    
    
    
    
    
    Balance at the end of the fiscal year
    
    
    84,160
    
    
    
    27,132
    
    
    
    Total of provisions
    
    
    164,347
    
    
    
    104,870
    
    
    
    178,150
 (1)
    
    See note 2.
 28.
    
    DEPOSITS AND OTHER LIABILITIES FROM FINANCIAL INTERMEDIATION
 28.1.
    
    Deposits
 The aggregate amount of time deposits and investment accounts exceeding Ps.100
(thousands) or more as of December 31, 2007 is 4,209,307.
  F - 72




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BANCO MACRO S.A. AND SUBSIDIARIES
 28.2.
    
    Central Bank of Argentina
 The Bank borrowed funds under various credit facilities from the Central Bank for
specific purposes, as follows:
 As of December 31, 2007
    
    
    As of December 31, 2006Interest
    
    
    
    
    
    
    
    
    
    
    Interestand CER
    
    
    
    
    
    
    
    
    
    
    and CERPrincipal
    
    
    adjustments
    
    
    Rate
    
    
    Principal
    
    
    adjustments
    
    
    RateShortterm liabilities
    
    
    34,660
    
    
    
    37,866
    
    
    
    1.97
    %
    
    
    35,807
    
    
    
    33,255
    
    
    
    1.95
    %Longterm liabilities
    
    
    135,182
    
    
    
    140,188
    
    
    
    2.00
    %
    
    
    168,330
    
    
    
    148,697
    
    
    
    2.00
    %Total
    
    
    169,842
    
    
    
    178,054
    
    
    
    
    
    
    
    204,137
    
    
    
    181,952
 Maturities of the long-term liabilities in the table above for each of the following
periods are as follows:
 Periods
    
    Amounts2009
    
    
    68,7082010
    
    
    68,7092011
    
    
    68,7092012
    
    
    68,7102014 and after
    
    
    534Total
    
    
    275,370
 28.3.
    
    Banks and international institutions
 As of December 31, 2007
    
    
    As of December 31, 2006Principal
    
    
    Interest
    
    
    Rate
    
    
    Principal
    
    
    Interest
    
    
    RateShortterm liabilities
    
    
    3,388
    
    
    
    3,891
    
    
    
    7.11
    %
    
    
    23,212
    
    
    
    5,718
    
    
    
    5.92
    %Longterm liabilities (1)
    
    
    157,550
    
    
    
    
    
    
    
    6.56
    %
    
    
    153,475
    
    
    
    
    
    
    
    6.26
    %Total
    
    
    160,938
    
    
    
    3,891
    
    
    
    
    
    
    
    176,687
    
    
    
    5,718
 Accrued interest is included in the Accrued interest, adjustments, foreign exchange and
quoted price differences payable under the Other Liabilities from Financial
Intermediation in the accompanying Consolidated Balance Sheets. Amounts are unsecured.
 (1)
    
    On June 16, 2006, the Bank and Crédit Suisse First Boston International
entered into a loan agreement for USD 50,000,000, maturing on January 21, 2008, at
LIBOR plus 1.95%. Such agreement includes restrictions mainly related to the
compliance with the payments established. In the event of noncompliance with the
agreement, the Bank will be unable to distribute dividends either directly or
indirectly through its subsidiaries. On January 18, 2008, an addendum was signed
changing the expiration date to January 21, 2010, and establishing a nominal
interest rate of 8.55% per anum. As of December 31, 2007 the Bank had duly
complied with the obligations assumed with the loan.
 28.4.
    
    Financing received from Argentine financial institutions
 The Bank borrowed funds under various credit facilities from the Central Bank for
specific purposes, as follows:
 As of December 31, 2007
    
    
    As of December 31, 2006Principal
    
    
    Interest
    
    
    Rate
    
    
    Principal
    
    
    Interest
    
    
    RateShortterm liabilities
    
    
    116,666
    
    
    
    2,372
    
    
    
    6.75
    %
    
    
    26,502
    
    
    
    1,219
    
    
    
    6.40
    %Longterm liabilities
    
    
    20,142
    
    
    
    21,116
    
    
    
    2.02
    %
    
    
    21,480
    
    
    
    18,957
    
    
    
    2.04
    %Total
    
    
    136,808
    
    
    
    23,488
    
    
    
    
    
    
    
    47,982
    
    
    
    20,176
 Accrued interest and adjustments are included in Accrued interest, adjustments, foreign
exchange and quoted price differences payable under the Other liabilities from
financial intermediation in the accompanying consolidated balance sheets. Amounts are
unsecured.
  F - 73




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BANCO MACRO S.A. AND SUBSIDIARIES
 Maturities of the long-term liabilities in the table above for each of the following
periods are as follows:
 Periods
    
    Amounts2009
    
    
    2,4272010
    
    
    3,4382011
    
    
    3,6402012
    
    
    3,6402013
    
    
    3,6402014
    
    
    5,5622015
    
    
    5,9462016
    
    
    5,9462017
    
    
    5,9462018
    
    
    1,07341,258
 28.5.
    
    Others
 In connection with the liability assumed with SEDESA related to the acquisition of
preferred shares of Nuevo Banco Bisel S.A. and Corporate Bonds issued, see notes 3.7 and
10.c.1), respectively.
 29.
    
    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 78,821, 50,755, and 36,094 for the fiscal years ended December 31,
2007, 2006 and 2005, respectively, and are included in the Operating ExpensesPersonnel
expenses account.30.
    
    MINIMUM CAPITAL REQUIREMENTS
 Under Central Banks rules, the Bank is required to maintain individual and consolidated
minimum levels of equity capital (minimum capital). As of December 31, 2007 and 2006, the
consolidated minimum capital is based upon risk-weighted assets and also considers interest
rate risk and market risk. The required consolidated minimum capital and the consolidated
Banks capital calculated under the Central Bank rules are as follows:
 Excess of actual MinimumRequired
    
    Computable
    
    Capital over RequiredMinimum Capital
    
    Capital
    
    Minimum CapitalDecember 31, 2007
    
    
    1,150,183
    
    
    
    2,969,676
    
    
    
    1,819,493December 31, 2006
    
    
    741,521
    
    
    
    2,656,276
    
    
    
    1,914,755
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BANCO MACRO S.A. AND SUBSIDIARIES
 31.
    
    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
    
    2007
    
    
    2006 (1)
    
    
    2005 (1)Interest and fees on loans
    
    
    1,287,555
    
    
    
    739,214
    
    
    
    418,175Interest on bearing deposits with other banks
    
    
    19,917
    
    
    
    10,516
    
    
    
    7,861Interest on other receivables from financial intermediation
    
    
    69,513
    
    
    
    68,146
    
    
    
    67,117Interest on securities and foreign exchange purchased under resale agreements
    
    
    24,642
    
    
    
    18,311
    
    
    
    14,924Securities gains, net
    
    
    437,832
    
    
    
    274,029
    
    
    
    203,566Other interest income
    
    
    13,283
    
    
    
    43,402
    
    
    
    17,574Total interest income
    
    
    1,852,742
    
    
    
    1,153,618
    
    
    
    729,217Interest on deposits
    
    
    501,168
    
    
    
    280,325
    
    
    
    191,637Interest on securities and foreign exchange purchased under resale agreements
    
    
    10,998
    
    
    
    9,634
    
    
    
    7,637Interest on short-term borrowings
    
    
    4,860
    
    
    
    7,094
    
    
    
    6,369Interest on long-term debt
    
    
    161,374
    
    
    
    16,474
    
    
    
    15,842Other interest expense
    
    
    100,068
    
    
    
    96,195
    
    
    
    82,250Total interest expense
    
    
    778,468
    
    
    
    409,722
    
    
    
    303,735Net interest income
    
    
    1,074,274
    
    
    
    743,896
    
    
    
    425,482Provision for loan losses, net
    
    
    38,401
    
    
    
    59,623
    
    
    
    18,295Net interest income after provision for loan losses
    
    
    1,112,675
    
    
    
    803,519
    
    
    
    443,777Service charges on deposit accounts and other fees
    
    
    394,167
    
    
    
    282,724
    
    
    
    186,062Credit-card service charges and fees
    
    
    102,856
    
    
    
    60,102
    
    
    
    43,687Other commissions
    
    
    19,789
    
    
    
    16,775
    
    
    
    7,948Foreign currency exchange trading income
    
    
    15,947
    
    
    
    11,607
    
    
    
    10,630Income from equity in other companies
    
    
    13,477
    
    
    
    7,928
    
    
    
    6,909Foreign exchange, net
    
    
    48,823
    
    
    
    40,007
    
    
    
    31,392Negative Goodwill
    
    
    
    
    
    
    73,112
    
    
    
    73,112Other
    
    
    93,489
    
    
    
    66,271
    
    
    
    86,267Total non-interest income
    
    
    688,548
    
    
    
    558,526
    
    
    
    446,007Commissions
    
    
    49,965
    
    
    
    44,607
    
    
    
    31,213Salaries and payroll taxes
    
    
    587,480
    
    
    
    395,421
    
    
    
    253,816Outside consultants and services
    
    
    41,802
    
    
    
    38,768
    
    
    
    25,476Depreciation of bank premises and equipment
    
    
    43,972
    
    
    
    30,736
    
    
    
    20,815Rent
    
    
    18,635
    
    
    
    14,085
    
    
    
    9,860Stationery and supplies
    
    
    14,511
    
    
    
    8,880
    
    
    
    7,823Electric power and communications
    
    
    31,980
    
    
    
    23,490
    
    
    
    17,047Advertising and publicity
    
    
    50,343
    
    
    
    31,138
    
    
    
    22,663Taxes
    
    
    12,819
    
    
    
    8,755
    
    
    
    5,616Directors and Statury Audits fee
    
    
    37,695
    
    
    
    14,355
    
    
    
    14,142Insurance
    
    
    6,091
    
    
    
    5,238
    
    
    
    3,956Security services
    
    
    35,487
    
    
    
    25,002
    
    
    
    16,366Maintenance, conservation and repair expenses
    
    
    36,392
    
    
    
    24,825
    
    
    
    17,429Amortization of organization and development expenses
    
    
    55,906
    
    
    
    37,291
    
    
    
    27,423Provision for losses on other receivables and other allowances
    
    
    15,599
    
    
    
    26,713
    
    
    
    9,301Other
    
    
    172,918
    
    
    
    128,262
    
    
    
    110,050Total non-interest expense
    
    
    1,211,595
    
    
    
    857,566
    
    
    
    592,996
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BANCO MACRO S.A. AND SUBSIDIARIES
 Consolidated Statements of Income (contd.)
    
    2007
    
    
    2006 (1)
    
    
    2005 (1)Minority interest of subsidiaries
    
    
    2,083
    
    
    
    3,178
    
    
    
    Income before income tax expense
    
    
    587,545
    
    
    
    501,301
    
    
    
    296,788Income tax expense
    
    
    92,345
    
    
    
    76,961
    
    
    
    34,042Income from continuing operations
    
    
    495,200
    
    
    
    424,340
    
    
    
    262,746Net income
    
    
    495,200
    
    
    
    424,340
    
    
    
    262,746Earnings per common share
    
    
    0.72
    
    
    
    0.64
    
    
    
    0.43
 (1)
    
    See note 4.2. 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, 2007, and 2006, as if the Bank followed the
balance sheet disclosure requirements under Article 9:
 2007
    
    
    2006 (1)ASSETSCash
    
    
    875,486
    
    
    
    644,191Interest-bearing deposits in other banks
    
    
    2,428,779
    
    
    
    2,099,861Federal Funds sold and securities purchased
under resale agreements of similar
arrangements
    
    
    253,623
    
    
    
    172,070Trading account assets
    
    
    616,508
    
    
    
    354,986Other short-term investments
    
    
    
    
    
    
    489Investment securities available for sale
    
    
    3,379,045
    
    
    
    2,873,954Loans
    
    
    10,649,628
    
    
    
    7,037,049Allowance for loan losses
    
    
    (225,320
    )
    
    
    (212,070
    )Premises and equipment
    
    
    626,319
    
    
    
    587,946Due from customers on acceptances
    
    
    131,407
    
    
    
    91,607Other assets
    
    
    765,965
    
    
    
    641,544Total assets
    
    
    19,501,440
    
    
    
    14,291,627
  F - 76




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2007
    
    

2006 (1)LIABILITIES AND SHAREHOLDERS EQUITYInterest-bearing deposits
    
    
    9,848,241
    
    
    
    7,309,335Non interest-bearing deposits
    
    
    3,742,908
    
    
    
    2,761,682Federal Funds purchased and securities sold under repurchase agreements
    
    
    316,270
    
    
    
    190,197Other short-term borrowings
    
    
    629,951
    
    
    
    375,807Long-term borrowings
    
    
    1,336,519
    
    
    
    510,939Contingent liabilities
    
    
    167,200
    
    
    
    114,108Other liabilities
    
    
    117,903
    
    
    
    36,966Bank acceptances outstanding
    
    
    131,407
    
    
    
    91,607Subordinated corporate bonds
    
    
    490,695
    
    
    
    507,844Minority interest in consolidated subsidiaries
    
    
    12,640
    
    
    
    78,045Total liabilities
    
    
    16,793,734
    
    
    
    11,976,530Common stocks
    
    
    683,979
    
    
    
    683,979Retained appropriated earnings
    
    
    382,916
    
    
    
    298,056Retained unappropriated earnings
    
    
    1,241,716
    
    
    
    933,967Other shareholders equity
    
    
    399,095
    
    
    
    399,095Total shareholders equity
    
    
    2,707,706
    
    
    
    2,315,097Total liabilities and shareholders equity
    
    
    19,501,440
    
    
    
    14,291,627
 (1)
    
    See note 4.2. 32.
    
    OPERATIONS BY GEOGRAPHICAL SEGMENTThe principal financial information, classified by country of office where transactions
originate, is shown below:
 As of December 31,2007
    
    
    2006
    
    
    2005Total revenues
    
    
    2,736,273
    
    
    
    1,842,298
    
    
    
    1,271,492Argentina
    
    
    2,704,895
    
    
    
    1,818,761
    
    
    
    1,247,412Bahamas
    
    
    31,378
    
    
    
    23,537
    
    
    
    24,080Net income
    
    
    495,200
    
    
    
    424,340
    
    
    
    262,746Argentina
    
    
    485,079
    
    
    
    419,523
    
    
    
    252,353Bahamas
    
    
    10,121
    
    
    
    4,817
    
    
    
    10,393Total assets
    
    
    19,781,246
    
    
    
    14,504,972
    
    
    
    9,487,822Argentina
    
    
    19,256,544
    
    
    
    14,000,262
    
    
    
    9,139,388Bahamas
    
    
    524,702
    
    
    
    504,710
    
    
    
    348,434
 33.
    
    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.
  F - 77




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 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 parts with the intention to exchange cash flows
and risks at a specific date and for a period in the future. Swaps may be exchange traded
or OTC agreements.
 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.
 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, 2007 and 2006:
 As of December 31,2007
    
    
    2006Forward purchases of foreign exchange without
delivery of underlying asset (a)
    
    
    331,411
    
    
    
    Put options sold (b) & (c)
    
    
    113,809
    
    
    
    245,675Forward sales of foreign exchange without delivery of
underlying asset (a)
    
    
    94,838
    
    
    
    27,576Interest rate swaps (d)
    
    
    36,238
    
    
    
    Call options sold (e), (f) & (g)
    
    
    549
    
    
    
    91,071Put options taken (g)
    
    
    
    
    
    
    50,649Call options taken (c) & (f)
    
    
    
    
    
    
    159,804
 (a)
    
    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, 2007
and 2006. They expired a few days later. Any quoted price-differences were charged to
income.(b)
    
    As of 2007 and 2006, the Bank recorded in memorandum accounts the amounts
representing obligations of the Bank under put options sold related to the Federal
Government Bond coupons established in Presidential Decrees Nos. 905/02 and 1,836/02. Such
options were imposed by the Federal Government to all financial institutions.  F - 78




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 During the Argentine crisis and pursuant to such decrees, the deposits which were
denominated in US Dollars were exchanged for peso denominated government bonds using a
Ps.1.4 to the U.S.$1.00 exchange rate. The bonds received by the depositors carried an
interest rate plus CER (an inflation index) adjustment.In order to enhance the publics trust in the system and the exchange mechanisms, the
Central Bank effectively required the banks to issue a put option to the depositors who so
requested. Such put options will entitle the bondholders to receive 1.4 exchange rate, plus
accrued interest plus CER. This was intended to effectively provide a floor for the yield
of such government bonds for the holders, therefore, if the value of these bonds were to
decrease below the terms of the put options (ie, Ps.1.4 exchange rate plus interest plus
CER), the holders would then be able to present the put options to the Bank and receive
such value. These options expire 30 days after the expiration of each coupon received by
the depositors, in varying dates through 2013. As it is a put option established by the
Federal Government to the detriment of the Bank, the holders of such options did not pay
any type of premium to the Bank and thus the Bank has never recognized any income from
these options, and has never established an initial liability since it received no up-front
premium.Since the exchange, these government bonds have increased in value significantly given the
improvement of the Argentinas economy and therefore of the governments creditworthiness.Therefore the options have never had any intrinsic value. It should be noted that the
interest rate and terms of the options are the same as the bonds and therefore the options
will only be exercised in case of government default. The Bank understands that such
options have only a di minimus value. Under Central Bank rules, they were valued at their
strike price and recorded only in memo accounts.(c)
    
    As of December 31, 2006, include a put and a call option agreements entered into by
the Bank, in its capacity as buyer of Nuevo Banco Bisel S.A. and SEDESA. Such option was
exercise by the Bank on May 28, 2007 (see note 3.7).(d)
    
    Relates to an interest rate swap agreement whereby on a quarterly basis the Bank
shall be entitled to receive the positive difference between 10.25% nominal interest per
anum and the variable rate agreed-upon in relation to a loan granted by the Bank (LIBOR
at 90 days plus 2.9%), applied to the residual principal of such loan. In the event that
the difference between both rates were negative, the Bank shall be required to pay the
difference. This agreement expires September 27, 2018.(e)
    
    As of December 31, 2007 the Bank sold call options over stock index. Under Central
Bank rules, the call option were value at their quoted price. The Bank enters into this
transaction to take advantage of price differentials. This agreement expired on January
19, 2008. The counterparty did not exercise the option.(f)
    
    As of December 31, 2006, the Bank took and sold call options over euros. Under
Central Bank rules, the call option taken were valued at their strike price and the call
option sold were valued at the quoted price. The Bank entered into these transactions to
take advantage of price differentials. These agreements expired on January 29, 2007.
Neither the Bank nor the counterparty exercised the options.(g)
    
    As of December 31, 2006, the Bank has sold a call option and purchased a put option
over the Senior and Junior debt securities of BG Financial Trust. The options share the
same strike price, exercise term (one of them has a two-day difference) and underlying
assets.The Bank structured these transactions to guarantee the sale of the assets involved by
charging an interest rate from the execution of the agreements until options are exercised.The Senior trust debt securities were fully amortized on February 5, 2007.After successive monthly renewals, on November 26, 2007, the counterparty exercised the
purchase option on the Junior trust debt securities.Under Central Bank rules, these options were valued at the agreed-upon strike price (see
additionally note 4.4.m.3).  F - 79




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BANCO MACRO S.A. AND SUBSIDIARIES
 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 31,2007
    
    
    2006Unused portion of loans granted per debtors classification regulations
    
    
    
    
    
    
    9,120Other guarantees provided covered by debtors classification regulations
    
    
    115,930
    
    
    
    243,057
 (*)
    
    A significant portion of the Banks guarantees as of December 31, 2007 and 2006, have
a remaining maturity of less than one year. 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 31,2007
    
    
    2006Checks drawn on the Bank pending clearing
    
    
    320,438
    
    
    
    326,885Checks drawn on other Banks
    
    
    183,684
    
    
    
    133,044
 Trust activities
 See note 13.
 34.
    
    BUSINESS SEGMENT CONSOLIDATED INFORMATION
 SFAS No. 131 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.
 35.
    
    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). SFAS shall refer to
Statements of Financial Accounting Standards.
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BANCO MACRO S.A. AND SUBSIDIARIES
 35.1.
    
    Income taxes
 a)
    
    As explained in note 5, Central Bank rules do not require the
recognition of deferred tax assets and liabilities and, therefore, income tax is
recognized on the basis of amounts due in accordance with Argentine tax regulations
and no deferred tax and liabilities are recognized.
 For purposes of US GAAP reporting, the Bank applies SFAS No. 109 Accounting for
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. SFAS No. 109 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.
 Effective January 1, 2007, the company adopted the provisions of FASB Interpretation
No. 48, Accounting for Uncertainty in Income Taxes  an interpretation of FASB
Statement No. 109 (FIN 48). FIN 48 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.
 The adoption of FIN 48 did not have an impact on Banco Macros financial position.
There were no unrecognized tax benefits as of the date of adoption and as of December
31, 2007.
 Deferred tax assets and liabilities are summarized as follows:
 As of December 31,Description
    
    2007
    
    
    2006Deferred tax assets:Loans
    
    
    55,708
    
    
    
    40,772Intangible assets
    
    
    84,945
    
    
    
    84,597Allowance for loss contingencies
    
    
    57,318
    
    
    
    41,952Net tax loss carry forwards
    
    
    54,796
    
    
    
    137,304Other
    
    
    18,294
    
    
    
    15,979Total deferred assets
    
    
    271,061
    
    
    
    320,604Deferred tax liabilities:Governments and private securities valuation
    
    
    (3,796
    )
    
    
    (9,114
    )Property, equipment and other assets
    
    
    (5,411
    )
    
    
    (9,296
    )Foreign exchange difference
    
    
    (12,004
    )
    
    
    (7,470
    )Other
    
    
    (7,306
    )
    
    
    (7,709
    )Total deferred liabilities
    
    
    (28,517
    )
    
    
    (33,589
    )Deferred tax asset
    
    
    242,544
    
    
    
    287,015Allowance for deferred tax assets
    
    
    (119,467
    )
    
    
    (104,113
    )Net deferred tax assets under US GAAP
    
    
    123,077
    
    
    
    182,902
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BANCO MACRO S.A. AND SUBSIDIARIES
 As of December 31, 2007, the consolidated tax loss carry forwards of 156,561 are as
follows:
 Expiration year
    
    Amount2008
    
    
    153,7172009
    
    
    5002010
    
    
    2502011
    
    
    8002012
    
    
    1,294156,561
 The movement of the net deferred tax assets for the fiscal years presented is
summarized as follows:
 As of December 31,2007
    
    
    2006
    
    
    2005Net deferred tax assets at the beginning of the year
    
    
    182,902
    
    
    
    106,553
    
    
    
    128,474Net deferred tax (liabilities) / assets acquired
from acquisition on business combination (*)
    
    
    (3,359
    )
    
    
    136,616
    
    
    
    Reversal of valuation allowance from acquisition of
Nuevo Banco Suquía S.A. (**)
    
    
    
    
    
    
    
    
    
    
    7,895Amount recorded in comprehensive income  Increase
    
    
    8,333
    
    
    
    9,719
    
    
    
    53,481Net deferred tax expense for the year
    
    
    (64,799
    )
    
    
    (69,986
    )
    
    
    (83,297
    )Net deferred tax assets at the end of the year
    
    
    123,077
    
    
    
    182,902
    
    
    
    106,553
 (*)
    
    See note 35.7.(**)
    
    As of December 31, 2005, the Bank reversed allowances for
deferred tax assets recognized in the acquisition of Nuevo Banco Suquía S.A.
(see note 35.7.c)). In accordance with paragraph 30 of SFAS 109, the reversed
allowances were applied first to zero intangible assets acquired from Nuevo
Banco Suquía S.A. (net of allocated negative goodwill) and second to reduce
income tax expense 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
    
    2007
    
    
    2006
    
    
    2005Pre-tax income in accordance with US GAAP
    
    
    559,674
    
    
    
    546,611
    
    
    
    546,783Statutory income tax rate
    
    
    35.00
    %
    
    
    35.00
    %
    
    
    35.00
    %Tax on net income at statutory rate
    
    
    195,886
    
    
    
    191,314
    
    
    
    191,374Permanent differences at the statutory rate:- Variation of allowances
    
    
    15,354
    
    
    
    84,116
    
    
    
    (89,934
    )- Income not subject to income tax
    
    
    (57,908
    )
    
    
    (111,575
    )
    
    
    19,984- Others
    
    
    3,812
    
    
    
    (16,908
    )
    
    
    (4,085
    )Income tax in accordance with US GAAP
    
    
    157,144
    
    
    
    146,947
    
    
    
    117,339
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BANCO MACRO S.A. AND SUBSIDIARIES
 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
    
    2007
    
    
    2006
    
    
    2005Income tax in accordance with Central Bank regulations
    
    
    92,345
    
    
    
    76,961
    
    
    
    34,042Deferred tax charges
    
    
    64,799
    
    
    
    69,986
    
    
    
    83,297Total income tax expense in accordance with US GAAP
    
    
    157,144
    
    
    
    146,947
    
    
    
    117,339
 In note 35.7 the abovementioned adjustments were split considering business
combinations or other adjustments.
 b)
    
    In addition, as of December 31, 2007, 2006 and 2005 the Bank had asset
of 48,891, 63,843 and 53,593, 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.
 In accordance with US GAAP, a valuation allowance was recorded for the portion of
such credit which was deemed to be more likely than not that it would not be
recovered, as per paragraphs 17 (e) and 25 of SFAS 109.
 The adjustments related to credit for tax on minimum presume income acquired in
business combination transactions are included in note 35.7.
 The effects of adjustments required to state such amounts in accordance with US GAAP,
besides the adjustments mentioned in note 35.7, would increase income by 34,351 as of
December 31, 2005.
 35.2.
    
    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.
 As provided for by Central Bank Communiqués A 3,366 and A 3,385, the exchange was
made at the carryover book value of the securities as of the date of the exchange
with no impact on the income statement.
 Such loans were valued according to Central Bank Communiqué A 3,911, as
supplemented (see note 4.4.c)).
 The loans received in this exchange were not significant.
 In addition, subsequently, the Bank acquired additional guaranteed loans in the
market and also through business combinations described elsewhere in this footnote.
The difference between the cost of each acquired loan and its expected future cash
flows is accounted for in accordance with PB 6  Amortization of Discounts on
Acquired Loans.
 In 2005, the Bank implemented SOP 03-3  Accounting for Certain Loans and Debt
Securities Acquired in a Transfer for loans acquired.
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BANCO MACRO S.A. AND SUBSIDIARIES
 The adjustments related to guaranteed loans acquired in business combination
transactions are included in note 35.7 d) to f).
 The effects of adjustments require to state amounts in accordance with US GAAP,
besides the adjustments mentioned in note 35.7 d) to f), would decrease assets by
256,165, 270,492 and 271,005 as of December 31, 2007, 2006 and 2005, respectively.
 On the other hand, income would increase by 14,327 and 513 and decrease by 34,420 for
the years ended December 31, 2007, 2006 and 2005, respectively.
 b)
    
    Secured Bonds
 As of December 31, 2007, 2006 and 2005 part of Secured Bonds (BOGARs) are classified
for US GAAP purposes as available for sale securities and carried at fair value with
the unrealized gain or loss, net of income taxes, recognized as a charge or credit to
equity through other comprehensive income. In connection with estimating the fair
value of the BOGARs, the Bank used quoted market values.
 During the fiscal year ended December 31, 2005, the Bank sold part of its Secured
Bonds and, therefore, realized a part of the gains that were previously recorded in
other comprehensive income.
 The effects of adjustments required to state such amounts in accordance with US GAAP
would decrease assets by 7,926 as of December 31, 2005.
 On the other hand, income would increase by 2,661, 31,653 and 239,301 for the years
ended December 31, 2007, 2006 and 2005, respectively.
 c)
    
    Other LoansNon-financial provincial government sector
 As of December 31, 2006 and 2005, the Bank had other loans granted to the
non-financial provincial government sector, which were valued according to Central
Bank Communiqué A 3,911, as supplemented (see note 4.4.c).
 In accordance with SFAS No. 114, as of December 31, 2006 and 2005, the Bank deemed
these loans to be impaired and measured impairment based on the present value of
expected future cash flows discounted at the loans effective interest rate, with a
corresponding adjustment to bad-debt expense.
 The effects of adjustments required to state such amounts in accordance with US GAAP
would decrease assets by 196 as of December 31, 2005.
 On the other hand, income would increase by 196 and 5,749 for the years ended
December 31, 2006 and 2005, respectively.
 d)
    
    Compensatory Bonds in connection with the compensation for foreign
currency position
 Under Law No. 25,561 and Presidential Decrees No. 494/02, No. 905/02 and No.
2,167/02, the Federal Government established a compensation mechanism for financial
institutions because of the negative financial effects resulting from the
pesification of foreign currency-denominated loans and deposits into pesos at
different exchange rates. In this regard, as further explained in such note, the
Central Bank, through Communiqués A 3,650, A 3,716, as supplemented, regulated
the compensation mechanism mentioned above.
 According to Central Bank rules, the compensation
received was originally valued at face value
plus interest accrued under the issuance terms.
 Under US GAAP, these assets (including those used for forward purchases under
repurchase agreements) should be considered as available for sale and carried at
fair value, with unrealized gains and losses reported net of income tax within the
shareholders equity accounts.
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BANCO MACRO S.A. AND SUBSIDIARIES
 Additionally, SFAS No. 115 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 amount of the write-down shall be included in earnings. The new cost basis
shall not be changed for subsequent recoveries in fair value. Subsequent increases
in the fair value of available-for-sale securities shall be included in other
comprehensive income.
 During the fiscal years ended December 31, 2006 and 2005, the Bank sold and realized
the gains that were previously recorded in other comprehensive income.
 The effects of adjustments required to state such amounts in accordance with US GAAP
would decrease assets by 20,719 as of December 31, 2005.
 On the other hand, income would increase by 40,736 and 128,875 for the years ended
December 31, 2006 and 2005, respectively.
 e)
    
    Instruments issued by Central Bank of Argentina and other unlisted
securities
 As of December 31, 2007, 2006 and 2005, the Bank had Instruments issued by Central
Bank of Argentina and other unlisted government securities. Under Central Bank
rules, these securities were valued at the quoted price of each security and at the
cost value increased by their internal rate of return, respectively.
 According to 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. However, SFAS No. 115 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 effects of adjustments required to state such amounts in accordance with US GAAP
would increase assets by 1,817 and 20 as of December 31, 2007 and 2006, respectively.
 On the other hand, income would increase by 18,608 and 13,780 for the years ended
December 31, 2007 and 2005, respectively and decrease by 15,870 for the year ended
December 31, 2006.
 The amortized cost, Gross unrealized gains and fair value of securities classified as
available for sale (including those derived from business combinations) as of December
31, 2007, 2006 and 2005, are as follows:
 Amortized Cost
    
    
    Gross Unrealized Gains
    
    
    Fair Value2007
    
    
    3,363,428
    
    
    
    6,727
    
    
    
    3,370,1552006
    
    
    2,842,286
    
    
    
    26,199
    
    
    
    2,868,4852005
    
    
    2,767,477
    
    
    
    54,053
    
    
    
    2,821,530
 For additional information in connection with the securities classified as available for
sale, see note 21.
 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, 2007, 2006 and 2005 are as follows:
 Proceeds from salesAvailable for
    
    as of December 31,sale securities
    
    2007 (*)
    
    
    2006 (*)
    
    
    2005 (*)Debt Securities Issued by Argentinian Government and others
    
    
    2,050,941
    
    
    
    2,845,568
    
    
    
    1,578,755
 (*)
    
    As of December 31, 2007, 2006 and 2005, realized gains as a result of those sales
amounted to 17,832, 43,742 and 168,456, respectively.
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BANCO MACRO S.A. AND SUBSIDIARIES
 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
35.17) is as follows:
 Securities
    
    2006
    
    
    Increase
    
    
    Decrease
    
    
    2007Federal Government Bonds 
maturity 2013
    
    
    
    
    
    
    1,957
    
    
    
    
    
    
    
    1,957Secured Bonds Decree 1579/02
    
    
    10,309
    
    
    
    
    
    
    
    (2,661
    )
    
    
    7,648Instrument issued by
Central Bank of Argentina
    
    
    15,890
    
    
    
    
    
    
    
    (18,428
    )
    
    
    (2,538
    )Corporate Bonds
    
    
    
    
    
    
    
    
    
    
    (340
    )
    
    
    (340
    )Total
    
    
    26,199
    (1)
    
    
    1,957
    
    
    
    (21,429
    )(2)
    
    
    6,727
 Securities
    
    2005
    
    
    Increase
    
    
    Decrease
    
    
    2006Compensatory Bonds
    
    
    20,017
    
    
    
    
    
    
    
    (20,017
    )
    
    
    Secured Bonds Decree 1579/02
    
    
    34,036
    
    
    
    
    
    
    
    (23,727
    )
    
    
    10,309Instrument issued by
Central Bank of Argentina
    
    
    
    
    
    
    15,890
    
    
    
    
    
    
    
    15,890Total
    
    
    54,053
    
    
    
    15,890
    (1)
    
    
    (43,744
    )
    
    
    26,199
    (1)
 Securities
    
    2004
    
    
    Increase
    
    
    Decrease
    
    
    2005Compensatory Bonds
    
    
    29,719
    
    
    
    5,507
    
    
    
    (15,209
    )
    
    
    20,017Secured Bonds Decree 1579/02
    
    
    128,196
    
    
    
    25,373
    
    
    
    (119,533
    )
    
    
    34,036Compensatory Bonds to be Received
    
    
    46,793
    
    
    
    
    
    
    
    (46,793
    )
    
    
    Total
    
    
    204,708
    
    
    
    30,880
    
    
    
    (181,535
    )
    
    
    54,053
 (1)
    Taking into account the unrealized gains related to the financial trusts
mentioned in note 35.21., increase amounted to 17,270 and the balance as of
December 31, 2006 amounted to 27,579.(2)
    Taking into account the liquidation of the financial trusts mentioned in
note 35.21., decrease amounted to 22,809. The portion of trading gains and losses for the period that relates to trading securities
still held as of December 31, 2007, 2006 and 2005 are as follows:
 Gains as of December 31,Trading Securities
    
    2007
    
    
    2006
    
    
    2005Debt Securities Issued by Argentinian Government
    
    
    467
    
    
    
    2,404
    
    
    
    30Shares
    
    
    (15
    )
    
    
    11
    
    
    
    (629
    )Corporate Bonds
    
    
    (315
    )
    
    
    116
    
    
    
    299Other Debt Securities
    
    
    
    
    
    
    10
    
    
    
    3,528Other
    
    
    2,850
    
    
    
    297
    
    
    
    (63
    )2,987
    
    
    
    2,838
    
    
    
    3,165
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BANCO MACRO S.A. AND SUBSIDIARIES
 35.3.
    
    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 SFAS
No. 91, 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 adjustments related to business combination transactions are included in note 35.7
d) to f).
 The effects of adjustments required to state such amounts in accordance with US GAAP,
besides the adjustments mentioned in note 35.7.d) to f), would decrease assets by
20,163, 17,092 and 11,483 as of December 31, 2007, 2006 and 2005, respectively. Income
for the years ended December 31, 2007, 2006 and 2005 would decrease by 3,071, 5,609 and
4,170, respectively.
 35.4.
    
    Allowance for loan losses
 The loan loss reserve represents the estimate of probable losses in the loan portfolio.
Determining the loan loss reserve requires significant management judgments and
estimates including, among others, identifying impaired loans, determining customers
ability to pay and estimating the fair value of underlying collateral or the expected
future cash flows to be received. Actual events will likely differ from the estimates
and assumptions used in determining the loan loss reserve. Additional loan loss reserve
could be required in the future.
 The loan loss reserve is maintained in accordance with Central Bank rules. This results
from evaluating the degree of debtors compliance and the guarantees and collateral
supporting the respective transactions.
 Increases in the reserve are based on the deterioration of the quality of existing
loans, while decreases in the reserve are based on regulations requiring the write-off
of non-performing loans classified as non-recoverable after a certain period of time
and on managements decisions to write off non-performing loans evidencing a very low
probability of recovery.
 In addition, under Central Bank rules, the Bank records recoveries on previously
charged-off loans directly to income and records the amount of charged-off loans in
excess of amounts specifically allocated as a direct charge to the consolidated income
of statement. The Bank does not partially charge off troubled loans until final
disposition of the loan, rather, the allowance is maintained on a loan-by-loan basis for
its estimated settlement value.
 Under Central Bank rules, a minimum loan loss reserve is calculated primarily based upon
the classification of commercial loan borrowers and upon delinquency aging (or the
number of days the loan is past due) for consumer and housing loan borrowers. Although,
the Bank is required to follow the methodology and guidelines for determining the
minimum loan loss reserve, as set forth by the Central Bank, the Bank is allowed to
establish additional loan loss reserve.
 For commercial loans, the Bank is required to classify all commercial loan borrowers.
In order to classify them, the Bank must consider different parameters related to each
of those customers. In addition, based on the overall risk of the portfolio, the Bank
considers whether or not additional loan loss reserves in excess of the minimum required
are warranted.
 For consumer loan portfolio, the Bank classifies loans based upon delinquency aging,
consistent with the requirements of the Central Bank. Minimum loss percentages required
by the Central Bank are also applied to the totals in each loan classification.
 Under US GAAP, a portion of the total allowance typically consists of amounts that are
used, for example, to cover loans that are analyzed on a pool or homogeneous basis and
to supplement specific allowances in recognition of the uncertainties inherent in point
estimates.
 The Banks accounting for its loan loss reserve under Central Bank rules differs in some
respects with practices of US-based banks, as discussed below.
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BANCO MACRO S.A. AND SUBSIDIARIES
 The adjustments related to business combination transactions are included in note 35.7
d) to f).
 In addition, all loans reserves from business combinations, since the effective date of
SOP 03-3, recorded under Central Bank rules were reversed under US GAAP purposes as of
each acquisition date, due to the fact that it is not appropriate to report such
acquired impaired loans on a gross basis, since the Bank is not expected to incur those
losses.
 a)
    
    Recoveries and charge-offs
 Under Central Bank rules, recoveries are recorded in a separate income line item
under Other Income. Charge-offs are recorded directly as loan loss provision in the
income statement. Under US GAAP, recoveries and charge-offs would be recorded in
the allowance for loan losses in the balance sheet; however there would be no net
impact on net income or shareholders equity.
 b)
    
    Credit Card Loans
 The Bank establishes its reserve for credit card loans based on the past due status
of the loan. All loans without preferred guaranties greater than 180 days have been
reserved at 50% in accordance with the Central Bank rules.
 Under US GAAP, the bank adopted a policy to charge off loans which are 180 days past
due should be charged off.
 Had US GAAP been applied, the Banks assets would have decreased by 3,600, 1,233,
and 500 as of December 31, 2007, 2006 and 2005, respectively. In addition, income
would decrease by 2,367, 733 and 81 for the years ended December 31, 2007, 2006 and
2005 respectively.
 c)
    
    Impaired loansNon Financial Private Sector and residents abroadSFAS No. 114, Accounting by Creditors for Impairment of a Loan and SFAS No.
118, Accounting by Creditors for Impairment of a LoanIncome Recognition and
Disclosures for computing US GAAP adjustments require a creditor to measure
impairment of a loan based on the present value of expected future cash flows
discounted at the loans effective interest rate, or at the loans observable market
price or the fair value of the collateral if the loan is collateral dependent. This
Statement is applicable to all loans (including those restructured in a troubled
debt restructuring involving amendment of terms), except large groups of
smaller-balance homogenous loans that are collectively evaluated for impairment.
Loans are considered impaired when, based on Managements evaluation, a borrower
will not be able to fulfill its obligation under the original loan terms.
 The adjustments related to business combination transactions are included in note
35.7 d) to f).The following table discloses the amounts required by SFAS 114, as of December
31, 2007, 2006 and 2005:
 Fiscal year ended December 31,2007
    
    
    2006
    
    
    2005Total amount of loans considered as impaired
    
    
    213,216
    
    
    
    141,504
    
    
    
    217,842Amount of loans considered as impaired for which
there is a related allowance for credit losses
    
    
    158,836
    
    
    
    135,219
    
    
    
    196,136Amount of loans considered as impaired for which
there is no related allowance for credit losses
    
    
    54,380
    
    
    
    6,285
    
    
    
    21,706Reserves allocated to impaired loans
    
    
    89,665
    
    
    
    71,524
    
    
    
    146,744Average balance of impaired loans during the fiscal year
    
    
    215,300
    
    
    
    179,673
    
    
    
    292,144Interest income recognized on impaired loans
    
    
    9,119
    
    
    
    881
    
    
    
    4,192
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BANCO MACRO S.A. AND SUBSIDIARIES
 The Bank recognizes interest income on impaired loans on a cash basis method.
 In addition, the Bank has performed a migration analysis based on uncollectivity
following the SFAS 5 considerations.
 Had US GAAP been applied, the Banks assets would have decreased by 12,739, 4,513
and 1,389 as of December 31, 2007, 2006 and 2005, respectively. In addition, income
would decrease by 8,226, 3,124 and 580 for the years ended December 31, 2007, 2006
and 2005, respectively.
 Under US GAAP, the activity in the allowance for loan losses for the years presented
is as follows:
 Fiscal year ended December 31,2007
    
    
    2006
    
    
    2005Balance at the beginning of the fiscal year
    
    
    97,116
    
    
    
    174,646
    
    
    
    226,568Provision for loan losses
    
    
    99,453
    
    
    
    63,959
    
    
    
    61,669Allowances for recovered loans
    
    
    
    
    
    
    
    
    
    
    6,262Write offs
    
    
    (38,199
    )
    
    
    (132,926
    )
    
    
    (60,929
    )Reversals
    
    
    (43,458
    )
    
    
    (8,563
    )
    
    
    (58,924
    )Balance at the end of the fiscal year
    
    
    114,912
    
    
    
    97,116
    
    
    
    174,646
 d)
    
    Interest recognition  non-accrual loans
 The method applied to recognize income on loans is described in note 4.4.d).
Additionally, the accrual of interest is discontinued generally when the related
loan is non performing and the collection of interest and principal is in doubt
generally after 90 days of being past due. Accrued interest remains on the Banks
books and is considered a part of the loan balance when determining the reserve for
credit losses.
 Under US GAAP the accrual of interest is discontinued when the contractual payment
of principal or interest has become 90 days past due or Management has serious
doubts about further collectibility of principal or interest, even though the loan
currently is performing. When a loan is placed on non-accrual status, unpaid
interest credited to income in the current year is reversed and unpaid interest
accrued in prior years is charged against the allowance for credit losses.
 Had US GAAP been applied, the Banks assets would have decreased by 2,491, 2,377 and
4,245 as of December 31, 2007, 2006 and 2005, respectively. In addition, income
would decrease by 114 and 300 for the years ended December 31, 2007 and 2005,
respectively, and increase by 1,868, for the year ended December 31, 2006.
 35.5.
    
    Intangible assets
 a)
    
    Judgments due to court
decisions related to foreign currency  denominated deposits
 As mentioned in notes 2 and 4.4.l.2), the Bank capitalized as intangible assets the
exchange differences related to constitutional protection and court judgments
resulting from court decisions and the estimates based on the Argentine
Supreme Courts decisions. These intangible assets are being amortized under the
straight-line method in accordance with Central Bank rules.
 Under US GAAP, the right to obtain these compensations is deemed a contingent gain
which can not be recognized until realized, pursuant to SFAS 5  Accounting for Contingencies.
  F - 89




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BANCO MACRO S.A. AND SUBSIDIARIES
 The adjustments related to these intangible asset acquired in business combination
transactions are included in note 35.7. d) to f).
 The effects of adjustments required to state such amounts in accordance with US
GAAP, besides the adjustments mentioned in note 35.7. d) to f), would be to decrease
assets by 108,788, 62,872 and 42,632 as December 31, 2007, 2006 and 2005,
respectively. In addition, income for the years ended December 31, 2007 and 2006
would decrease by 45,916 and 20,240, respectively, and income for the year ended
December 31, 2005 would increase by 7,405.
 b)
    
    Software costs
 US GAAP SOP 98-1, defines three stages for the costs of computer software developed
or obtained for internal use: the preliminary project stage, the application
development stage and the post-implementation operation stage. Only certain costs in
the second stage should be capitalized. Under Central Bank rules, the Bank
capitalized costs relating to all three of the stages of software development and
amortized these costs on straight-line basis.
 Under US GAAP SOP 98-1, the Bank properly capitalized only certain costs of computer
software developed or obtained for internal use (mainly, services provided to
develop the software during the application development stage, costs incurred to
obtain computer software from third parties, and travel expenses incurred by
employees in their duties directly associated with developing software).
 The adjustments related to capitalized of software cost acquired in business
combination transactions are included in note 35.7 d) to f).
 The effects of adjustments required to state such amounts in accordance with US
GAAP, besides the adjustments mentioned in note 35.7 d) to f), would decrease assets
by 39,016, 15,064 and 12,084 as of December 31, 2007, 2006 and 2005, respectively.
In addition income would decrease by 23,952 and 2,980 for the years ended December
31, 2007, and 2006, respectively, and income for the year ended December 31, 2005
would increase by 381.
 c)
    
    Organizational costs
 Applying US GAAP and in accordance with SOP 98-5 also resulted in other adjustments
relative to capitalized organizational costs resulting in a decrease to the Banks
assets of 8,656, 1,503 and 1,881 as of December 31, 2007, 2006 and 2005,
respectively. In addition income for the year ended December 31, 2007 would
decrease by 7,153 and income would increase by 378 and 1,442 for the years ended
December 31, 2006 and 2005, respectively.
 The adjustments related to Organizational costs acquired in business combination
transactions are included in note 35.7 d) to f).
 35.6.
    
    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.
 The adjustments related to business combination transactions are included in note 35.7
d) to f).
 Had US GAAP been applied, the Banks shareholders equity would be decreased by 39,345,
20,170 and 16,805 as of December 31, 2007, 2006 and 2005, respectively. In addition,
the income for the years ended December 31, 2007, 2006 and 2005 would decreased by
19,175, 3,365 and 3,286 respectively.
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BANCO MACRO S.A. AND SUBSIDIARIES
 35.7.
    
    Business Combinations
 The Bank has effected several business combinations in the past few years. In order to
present more detailed information about the US GAAP differences related to these
business combinations, the Bank has reclassified certain line items in the
reconciliation table shown in note 35.16. 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 Nuevo
Banco Bisel 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 former Banco Bansud S.A.
 In January 2002, the Bank acquired the controlling interest in former Banco Bansud
S.A., at a contingent purchase price of 65,000 (subsequently deemed not to be
payable).
 Under Central Bank rules, business combinations are recorded at 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 negative goodwill resulting from
the difference between the net equity book value, as computed under such standards,
at the acquisition date and the contingent purchase price. The negative goodwill is
considered as a monetary liability for purposes of inflation accounting and is being
amortized under the straight line method over 5 years. The contingent purchase price
was recorded as a liability at the date of the acquisition and was reversed into
income as a gain in 2003 when it was determined that such contingent consideration
was not payable.
 Under US GAAP, SFAS 141 Business combination requires this acquisition to be
accounted for under the purchase method. The contingent purchase price was not
considered since it never materialized and thus the purchase price was deemed to be
zero. The assets acquired and liabilities assumed were recognized at their fair
values at the date of acquisition. The difference between the purchase price and
the fair value of the net assets acquired resulted in a negative goodwill.
 The following table summarizes the estimated fair values of the assets acquired and
liabilities assumed at the date of acquisition (taking into account the percentage
of acquisition):
 Cash
    
    
    144,385Government Securities
    
    
    74,352Loans
    
    
    1,431,727Other assets
    
    
    691,443Tangible non-current assets
    
    
    145,257Total assets acquired
    
    
    2,487,164Deposits
    
    
    2,582,768Other liabilities
    
    
    1,050,536Total liabilities assumed
    
    
    3,633,304Net assets
    
    
    (1,146,140
    )
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BANCO MACRO S.A. AND SUBSIDIARIES
 % acquired
    
    
    81.225
    %Net assets acquired
    
    
    (930,952
    )Irrevocable capital contribution transferred
    
    
    970,668
    (*)Total net assets acquired
    
    
    39,716Purchase price
    
    
    Negative Goodwill
    
    
    (39,716
    )(**)
 (*)
    
    The irrevocable capital contributions were made by Banamex in
its capacity as Banco Bansud S.A. ́s shareholder pursuant to the acquisition by
Banco Macro S.A. The Bank obtained the rights over these irrevocable
contributions as the new shareholders of Banco Bansud S.A.(**)
    
    The negative goodwill has been applied to reduce on a pro rata
basis the amounts assigned to the non-current assets acquired. Given the
Argentine economic environment and the Banks situation at the time of the
acquisition (see note 2), no identifiable intangible assets were recognized. The reconciliation of shareholders equity to US GAAP below includes the effects of
the purchase accounting adjustments, the reversal of the negative goodwill and
related amortization and inflation effects calculated under Central Bank rules, and
the reversal of the gain related to the de-recognition of the contingent purchase
price.
 The effects on the Banks net assets, to allocate the negative goodwill under US
GAAP had been resulted in a decrease by 11,944 and 16,574 and increase by 51,909 as
of December 31, 2007, 2006 and 2005, respectively. In addition income would increase
by 4,630 and decrease by 68,483 and 68,482 for the years ended December 31 2007,
2006 and 2005, respectively.
 b)
    
    Merger with and into former Banco Bansud S.A.  a downstream merger
 In March 2003 the Bank and its subsidiary former Banco Bansud S.A., entered into a
merger agreement (the Merger Agreement). The Merger Agreement provided that,
former Banco Macro S.A. was merged with and into former Banco Bansud S.A., with
former Banco Bansud S.A. continuing as the surviving corporation, renamed Banco
Macro Bansud S.A. The result of this transaction was a single shareholder group,
including the former minority interest of former Banco Bansud S.A., owning the
consolidated net assets. The terms of the merger were agreed to and announced on
March 28, 2003. Before the merger, the former Banco Bansud S.A. was a public company
in the Argentine stock market with a readily available tradable market value of its
 shares.
 The acquisition date was December 2003, upon the appropriate shareholders and
regulatory approvals. At that date, Banco Bansud S.A. issued the common shares and
exchanged for all the outstanding common stock of Banco Macro S.A.
 Banco Macro S.A. shareholders received 14.75 shares of former Banco Bansud S.A. for
each common share of Banco Macro S.A.
 Under Central Bank rules, the merger was accounted for based on the carryover value
of assets and liabilities as of January 1, 2002 since the merger was given
retroactive effect to that date. Additionally, therefore, the minority interest was
not recognized in 2003.
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BANCO MACRO S.A. AND SUBSIDIARIES
 Under US GAAP, this transaction was accounted for as a downstream merger and an
acquisition of minority interest. SFAS 141 requires the acquisition of the minority
interest of former Banco Bansud S.A. to be accounted for under the purchase method.
As the consideration given to the minority interest was not in the form of cash, the
cost of the interest acquired was determined based on the fair value of the net
assets given. The quoted market price of the former Banco Bansud S.A. shares traded
was used to determine such cost. The terms of the acquisition were agreed to and
announced on March 28, 2003. On that date the share price of former Banco Bansud
S.A. was Ps.1.490. The average share price between two days before and end two days
after that date was Ps.1.494, which is the price used to determine the acquisition
cost. This is in accordance with EITF 99-12 which requires that the quoted market
price to be used must consider the market price during a reasonable short period of
time, such as just a few days before and after the acquisition is agreed to and
announced.
 The cost of the acquired minority interest (purchase price) has been allocated to
the identifiable tangible and intangible assets with finite lives acquired and
liabilities assumed based upon their fair value as of the acquisition date, and the
excess of the fair value over the cost resulting in a negative goodwill. Merged
results were recognized after acquisition date.
 The following table summarizes the estimated fair values of the assets acquired and
liabilities assumed at the date of acquisition corresponding to the minority
interest acquired (December 2003):
 Cash
    
    
    296,626Government securities
    
    
    1,333,992Loans
    
    
    520,751Other assets
    
    
    667,643Tangible non-current assets
    
    
    106,988Intangible assets subject to amortization  Mainly
Customer related assets (5 - year weighted average
useful life)
    
    
    45,365Total assets acquired
    
    
    2,971,365Deposits
    
    
    1,793,742Other liabilities
    
    
    449,806Total liabilities assumed
    
    
    2,243,548Net assets
    
    
    727,817% acquired
    
    
    18.775
    %Net assets acquired
    
    
    136,648Purchase price
    
    
    127,694Negative Goodwill
    
    
    (8,954
    )(*)
 (*)
    
    The negative goodwill has been applied to reduce on a pro
rata basis the amount assigned to the non-current intangible and tangible
assets acquired. Therefore, the US GAAP
reconciliation of shareholders equity and net income reflects
the effects of the purchase accounting adjustments, and the related effects on the
deferred income tax, and the minority interest from January 1, 2003 through the
merger date in December 2003, as well as the effects of the amortization of
identified intangible assets, and comprehensive income.
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BANCO MACRO S.A. AND SUBSIDIARIES
 The effect on the Banks net assets, to allocate the negative goodwill under US
GAAP, had resulted in a decrease by 6,235, 5,708 and 5,181 as of December 31, 2007,
2006 and 2005 respectively. In addition, the income for the year ended December 31,
2007, 2006 and 2005 would decrease by 527, 527 and 527, respectively.
 c)
    
    Acquisition of Nuevo
Banco Suquía S.A.  Merger with and into Former
Nuevo Banco Suquía S.A.
 c.1)
    
    Acquisition of Nuevo Banco Suquía S.A.
 In December 2004, the Bank acquired 100% of Nuevo Banco Suquía S.A., at a cash
purchase price of 16,407.
 Under Central Bank Rules, business combinations are accounted for at carryover
value. The Bank recognized the difference between the net equity book value at the
acquisition date and the purchase price as a negative goodwill.
 Under US GAAP, SFAS 141 requires the acquisition of the controlling interest of
Nuevo Banco Suquía S.A. to be accounted for as a business combination applying
purchase accounting. The purchase price has been allocated to the identifiable
tangible and intangible assets with finite lives acquired and liabilities assumed
based upon their fair value as of the acquisition date, and the excess of the fair
value over the cost resulting in a negative goodwill.
 The following table summarizes the estimated fair values of the assets acquired
and liabilities assumed at the acquisition date corresponding to the 100% interest
acquired.
 Cash
    
    
    336,266Government securities
    
    
    411,815Loans
    
    
    837,164Other assets (*)
    
    
    553,759Tangible non-current assets
    
    
    72,445Intangible assets subject to amortization  Mainly
Customer related assets (5 - year weighted average
useful life)
    
    
    46,783Total assets acquired
    
    
    2,258,232Deposits
    
    
    1,548,049Other liabilities
    
    
    599,701Total liabilities assumed
    
    
    2,147,750Net assets
    
    
    110,482% acquired
    
    
    100
    %Purchase price
    
    
    16,407Negative Goodwill
    
    
    (94,075
    )(**)
 (*)
    
    Includes 135,123 of deferred tax assets, net of
allowances (see additionally note 35.1.a)).(**)
    
    The negative goodwill has been applied to reduce on a pro
rata basis the amounts assigned to the non-current intangible and tangible
assets acquired.  F - 94




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BANCO MACRO S.A. AND SUBSIDIARIES
 c.2)
    
    Merger with and into Former Nuevo Banco Suquía S.A.
 As mentioned in note 3.5., Banco Macro S.A. carried out the legal merger of Nuevo
Banco Suquía S.A. with and into the former. The result of this transaction was a
single shareholder group, including the former minority interest of former Nuevo
Banco Suquía S.A., owning the consolidated net assets. The minority interest
acquired represented 0.0165% of Nuevo Banco Suquía S.A.
 The acquisition date was October 16, 2007, upon the appropiate shareholders and
regulatory approvals.
 At that date, Banco Macro S.A. issued 35,536 registered Class B shares to be
delivered to the minority shareholders of the absorbed bank.
 Under Central Bank rules, the legal merger was accounted for based on the
carryover value of assets and liabilities as of January 1, 2005 since the merger
was given retroactive effect to such date. Additionally, therefore, the minority
interest was not recognized in 2007.
 Under US GAAP, this transaction is accounted for as an acquisition of minority
interest. SFAS 141 requires the acquisition of the minority interest of former
Nuevo Banco Suquía S.A. to be accounted for under the purchase method. As the
consideration given to the minority interest was not in the form of cash, the
cost of the interest acquired was determined based on the fair value of the net
assets given. The quoted market price of the Banco Macro S.A.s shares traded was
used to determine such cost. The terms of the acquisition were agreed to and
announced on March 14, 2007. On that date the share price of Banco Macro S.A. was
Ps.10.200. The average share price between two days before and end two days after
that date was Ps.10.460, which is the price used to determine the acquisition
cost. This is in accordance with EITF 99-12 which requires that the quoted market
price to be used must consider the market price during a reasonable short period
of time, such as just a few days before and after the acquisition is agreed to
and announced.
 Finally, under US GAAP, the total cost of the acquired minority interest (0.0165%
of Nuevo Banco Suquía S.A.) was 372. Therefore, the Bank believed that purchase
price allocation would not have a significant impact on the Banks consolidated
financial condition or results of operations. In addition, merged results were
recognized after acquisition date.
 The effects on the Banks net assets, to allocate the negative goodwill and to
account the legal merger abovementioned under US GAAP had been resulted in a
decrease by 35,440 39,510 and 53,421 as of December 31, 2007, 2006 and 2005,
respectively. In addition income would increase by 3,925 and 13,911 for the year
ended December 31, 2007 and 2006, respectively, and decrease by 39,773 for the year
ended December 31, 2005.
 d)
    
    Acquisition of controlling interest in Banco del Tucumán S.A.
 On May 5, 2006, as mentioned in note 3.6., 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 adquired and the
purchase price as a positive goodwill. Such goodwill is being amortized under the
straight line method over 10 years.
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BANCO MACRO S.A. AND SUBSIDIARIES
 Under US GAAP, SFAS 141 requires 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 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 assets
over the cost has resulted in a negative goodwill.
 The following table summarizes the estimated fair values of the assets acquired and
liabilities assumed at the acquisition date:
 Cash
    
    
    150,190Government and Private securities
    
    
    198,411Loans
    
    
    213,696Other assets
    
    
    102,053Tangible non-current assets
    
    
    23,312Intangible non-current assets  Mainly Customer related
assets (8  year weighted average useful life)
    
    
    76,883Total assets acquired
    
    
    764,545Deposits
    
    
    594,654Other liabilities (*)
    
    
    71,791Total liabilities assumed
    
    
    666,445Net assets
    
    
    98,100% acquired
    
    
    75
    %Net assets acquired
    
    
    73,575Purchase price
    
    
    45,961Negative Goodwill
    
    
    (27,614
    )(**)
 (*)
    
    Includes 1,567 of deferred tax liability.(**)
    
    The negative goodwill has been applied to reduce on a pro
rata basis the amounts assigned to the non-current intangible and tangible
assets acquired. Subsequently, as explained in note 3.6, 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 SFAS 141.
 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, and the excess of the fair value of the acquired net assets over
the cost has resulted in a negative goodwill.
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BANCO MACRO S.A. AND SUBSIDIARIES
 The following table summarizes the estimated fair values of the assets acquired and
liabilities assumed:
 Additional interest acquired in2007
    
    
    2006Net assets
    
    
    174,713
    (*)
    
    
    144,256
    (*)% acquired
    
    
    10.09
    %
    
    
    4.84
    %Net assets acquired
    
    
    17,628
    
    
    
    6,982Purchase price
    
    
    9,709
    
    
    
    2,907Negative Goodwill
    
    
    (7,919
    )(**)
    
    
    (4,075
    )(**)
 (*)
    
    Includes 3,359 (liability) and 143 (asset) of deferred tax,
respectively.(**)
    
    The negative goodwills have been applied to reduce on a pro
rata basis the amounts assigned to the non-current intangible and tangible
assets acquired. The following table summarizes the adjustments to the assets acquired and
liabilities assumed as of December 31, 2007 and 2006:
 Increase / (Decrease)Consolidated
    
    
    Consolidated Netshareholders Equity
    
    
    income Year endedAs of December 31
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Deferred taxes, net of allowances
    
    
    (411
    )
    
    
    (1,246
    )
    
    
    4,194
    
    
    
    178Write off of tangible and
intangible assets as a result of
negative goodwill allocated
    
    
    8,133
    
    
    
    9,945
    
    
    
    (6,270
    )
    
    
    (2,255
    )Judgements due to Court
decisions related to foreign
currency-denominated deposit
    
    
    (4,339
    )
    
    
    (7,510
    )
    
    
    4,076
    
    
    
    2,651Other purchase price adjustments
    
    
    (3,296
    )
    
    
    (633
    )
    
    
    (2,469
    )
    
    
    (18
    )Total
    
    
    87
    
    
    
    556
    
    
    
    (469
    )
    
    
    556
 e)
    
    Acquisition of Nuevo Banco Bisel S.A.
 As mentioned in note 3.7., 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 adquired and the
purchase price as a positive goodwill. Such goodwill is being amortized under the
straight line method over 10 years.
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BANCO MACRO S.A. AND SUBSIDIARIES
 Under US GAAP, SFAS 141 requires 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 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 assets
over the cost has resulted in a negative goodwill.
 The following table summarizes the estimated fair values of the assets acquired and
liabilities assumed at the acquisition date:
 Cash
    
    
    263,317Government and Private securities
    
    
    501,667Loans
    
    
    892,162Other assets (*)
    
    
    217,087Tangible non-current assets (**)
    
    
    Intangible non-current assets (**)
    
    
    Total assets acquired
    
    
    1,874,233Deposits
    
    
    1,392,676Other liabilities
    
    
    411,782Total liabilities assumed
    
    
    1,804,458Minority interest
    
    
    8,561Net assets
    
    
    61,214% acquired
    
    
    100
    %Net assets acquired
    
    
    61,214Cash purchase price
    
    
    19,509Extraordinary gain
    
    
    (41,705
    )(**)
 (*)
    
    Includes 138,040 of deferred tax assets, net of allowances.(**)
    
    The negative goodwill has been applied to reduce on a pro
rata basis the amounts assigned to the non-current intangible (35,555), mainly
related to customers, and tangible assets (123,114) acquired. After reducing
to zero such assets, the remaining excess is considered an extraordinary gain.
  F - 98




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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, 2007 and 2006:
 Increase / (Decrease)Consolidated
    
    
    Consolidated Netshareholders Equity
    
    
    income Year endedAs of December 31
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Deferred taxes, net of allowances
    
    
    68,919
    
    
    
    162,329
    
    
    
    (93,893
    )
    
    
    24,772Minimum presume tax income
    
    
    
    
    
    
    18,490
    
    
    
    (18,490
    )
    
    
    5,196Loans  Non financial federal government sector
    
    
    (32,881
    )
    
    
    (15,685
    )
    
    
    (17,196
    )
    
    
    717Loans to private sector
    
    
    (1,595
    )
    
    
    (7,285
    )
    
    
    5,690
    
    
    
    (7,129
    )Adjustment for minority interest acquired (*)
    
    
    59,038
    
    
    
    57,736
    
    
    
    1,302
    
    
    
    (346
    )Write off of tangible and intangible assets as
a result of negative goodwill allocated
    
    
    (123,815
    )
    
    
    (147,437
    )
    
    
    23,622
    
    
    
    11,949Other purchase price adjustments (**)
    
    
    20,649
    
    
    
    7,155
    
    
    
    14,874
    
    
    
    (2,458
    )Total
    
    
    (9,685
    )
    
    
    75,303
    
    
    
    (84,091
    )
    
    
    32,701
 (*)
    
    See additionally note 3.7.(**)
    
    See additionally note 35.21.
 f)
    
    Other
 Had US GAAP been applied, other adjustments relative to business combination would
decrease the Banks assets by 8,397, 9,733 and 9,461 as of December 31, 2007, 2006
and 2005, respectively. In addition, income would increase by 1,336 and 27 for the
years ended December 31, 2007 and 2005 respectively and income would decrease by 272
for the year ended December 2006.
 35.8.
    
    Reporting on Comprehensive Income (loss)
 SFAS No. 130 Reporting on Comprehensive Income 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 35.17. In the
Banks case, comprehensive income is affected by SFAS 52 cumulative translation
adjustments related to the foreign subsidiaries and unrealized gains and losses of
available for sale securities, net of income taxes.
  F - 99




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 35.9.
    
    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.
 35.10.
    
    Accounting for derivative instruments and hedging activities
 SFAS No. 133 Accounting for derivative instruments and hedging activities 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. If certain conditions are met, a derivative may be specifically designated as (a)
a hedge of the exposure to changes in the fair value of a recognized asset or liability
or an unrecognized firm commitment, (b) a hedge of the exposure to variable cash flows
of a forecasted transaction, or (c) a hedge of the foreign currency exposure of a net
investment in a foreign operation, an unrecognized firm commitment, an available for
sale security, or a foreign currency denominated forecasted transaction.
 Among other provisions, SFAS No. 133 requires that for a transaction to qualify for
special hedge accounting treatment the transaction must meet specific test of
effectiveness that will reduce the volatility in the income statement to the extent that
the hedge is effective and all hedge ineffectiveness is required to be reported
currently in computing of net income. SFAS No. 133 further requires the identification
of assets, liabilities or anticipated transactions being hedged and periodic revaluation
of such hedged positions to reflect the changes in market value of risk being hedged.
SFAS No. 133 further expands the definition of derivatives to include certain contacts
or provisions commonly embedded in contracts or financial instruments and requires that
such derivatives be reported at fair value. The Bank had no such embedded derivatives.
The Bank does not apply hedge accounting.
 Considering the derivatives used by the Bank (described in note 33 and according to the
valuation standards described in notes 4.4.h) and 4.4.m), had this accounting
requirement applied, the Banks assets would increase in 2,446 as of December 31, 2007.
In addition income would increase by 2,446 for the year ended December 31, 2007.
 35.11.
    
    Foreign currency translation
 Financial statements of the subsidiaries Macro Bank Limited and Red Innova
Administradora de Inversión S.A. were translated under Central Bank rules as described
in note 4.1. US GAAP foreign currency translation requirements are covered by SFAS No 52
Foreign Currency Translation 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 GAAP been applied, the Banks net income for years ended December 31, 2007, 2006
and 2005 would increase by 2,956, 1,294 and 2,148, respectively, and these resulting
differences recognized as other comprehensive income.
  F - 100




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 35.12.
    
    Accounting for guaranteesThe Bank issues financial guarantees, which are obligations to pay to a third party when
a customer fails to repay its obligation.The Bank charges a fee for issuance of these guarantees, which is deferred and
recognized as income over the period of the guarantee.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, SFAS interpretation No 45 Guarantors accounting and disclosure
requirements for guarantees, including indirect guarantees of indebtedness or others
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.35.13.
    
    Earning Per ShareThe 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, SFAS 128, Earnings per share, 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:
 2007
    
    
    2006
    
    
    2005Numerator:Net income before extraordinary gains under US
GAAP
    
    
    384,040
    
    
    
    357,959
    
    
    
    463,795Extraordinary gains (see note 35.7.e))
    
    
    
    
    
    
    41,705
    
    
    
    Net income under US GAAP
    
    
    384,040
    
    
    
    399,664
    
    
    
    463,795Denominator:Common stock outstanding during the year (1)
    
    
    683,943,437
    
    
    
    608,943,437
    
    
    
    608,943,437Common stock issued (2)
    
    
    35,536
    
    
    
    75,000,000
    
    
    
    Weighted-average common shares outstanding for
the year
    
    
    683,952,394
    
    
    
    666,477,840
    
    
    
    608,943,437Basic EPS before extraordinary gains under US
GAAP  stated in pesos
    
    
    0.56
    
    
    
    0.54
    
    
    
    0.76Basic EPS for the extraordinary gains under US
GAAP  stated in pesos
    
    
    
    
    
    
    0.06
    
    
    
    Total Basic EPS under US GAAP  stated in pesos
    
    
    0.56
    
    
    
    0.60
    
    
    
    0.76
 (1)
    
    Common stock of the Bank prior to the capital increases mentioned in
note 9.(2)
    
    Capital increases mentioned in note 9.  F - 101




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 During 2007, 2006 and 2005, the Bank paid 102,591, 68,395 and 30,447, respectively, in
cash dividends. Dividend per share amounted to Ps. 0.25, 0.10 and 0.05 respectively. In
addition, On April 29, 2008, the Regular and Special General Shareholders Meeting of
Banco Macro S.A. approved, among other issues, the distribution of cash dividends
amounting to 170,995.35.14.
    
    Issuance and Offering Cost of SharesAs disclosed in note 9., on September 26, 2005, the Regular and Special Shareholders
Meeting of the Bank approved a capital stock increase through the public subscription of
 shares for a face value of up to Ps. 75,000,000 by issuing up to 75,000,000 common,
class B and book-entry shares. In March and April 2006, the capital increase had been
fully subscribed and paid in, plus a stock issuance premium of 394,500.In the offering and issuance of these shares, the Bank incurred direct incremental costs
(mainly, legal fees and travel costs) attributable to issuance and offering of these
 shares.Under Central Bank rules, the Bank recognizes as expenses these costs when they are
incurred.Under US GAAP, S.A.B. Topic 5-A states that, prior to the effective date of an offering
of equity securities, certain costs related to the offering can be deferred (specific
incremental costs directly attributable to a proposed or actual offering of securities)
and charged against the gross proceeds of the offering.Had US GAAP been applied, the Banks assets would increase by 2,506 as of December 31,
2005. In addition, the income for the years ended December 31, 2006 and 2005 would
increase by 15,664 and 2,506, respectively.35.15.
    
    Issuance Cost of Corporate BondsAs disclosed 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, the Bank issued the 1st series of Class 2
non-subordinated Corporate Bonds for a face value of USD 150,000,000 and on June 7,
2007, the Bank issued the 1st series of Class 3 non-subordinated Corporate Bonds
(peso-linked notes) for a face value of USD 100,000,000.In the issuance of these bonds, the Bank incurred direct incremental costs (mainly
underwriting and legal fees).Under Central Bank rules, the Bank recognizes as expenses these costs when they are
incurred.Under US GAAP, issuance costs should be recognized as additional interest expense over
the life of the debt instrument under the effective interest method.Had US GAAP been applied, the Banks assets would increase by 18,400 and 10,288 as of
December 31, 2007 and 2006, respectively. Income for the years ended December 31, 2007
and 2006 would increase by 8,112 and 10,288, respectively.
  F - 102




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 
 35.16.
    
    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.
    
    
    2007
    
    
    2006
    
    
    2005Net income in accordance with Central Bank rules
    
    
    
    
    
    
    495,200
    
    
    
    424,340
    
    
    
    262,746Income taxesDeferred taxes, net of allowances
    
    
    35.1.a
    )
    
    
    24,900
    
    
    
    (94,936
    )
    
    
    (83,297
    )Allowance for tax on minimum presume income
    
    
    35.1.b
    )
    
    
    
    
    
    
    
    
    
    
    34,351Exposure to the Argentine public sector and private securitiesLoans  Non-financial federal government sector
    
    
    35.2.a
    )
    
    
    14,327
    
    
    
    513
    
    
    
    (34,420
    )Secured Bonds
    
    
    35.2.b
    )
    
    
    2,661
    
    
    
    31,653
    
    
    
    239,301Other loans  Non-financial provincial government sector
    
    
    35.2.c
    )
    
    
    
    
    
    
    196
    
    
    
    5,749Compensatory Bonds
    
    
    35.2.d
    )
    
    
    
    
    
    
    40,736
    
    
    
    128,875Instrument issued by Central Bank of Argentina and other
unlisted securities
    
    
    35.2.e
    )
    
    
    18,608
    
    
    
    (15,870
    )
    
    
    13,780Loan origination fees
    
    
    35.3
    
    
    
    (3,071
    )
    
    
    (5,609
    )
    
    
    (4,170
    )Allowance for loan lossesCredit Card Loans
    
    
    35.4.b
    )
    
    
    (2,367
    )
    
    
    (733
    )
    
    
    (81
    )Impaired Loans  Non Financial Private
Sector and residents abroad
    
    
    35.4.c
    )
    
    
    (8,226
    )
    
    
    (3,124
    )
    
    
    (580
    )Interest recognition  non accrual loans
    
    
    35.4.d
    )
    
    
    (114
    )
    
    
    1,868
    
    
    
    (300
    )Intangible assetsJudgments due to court decisions related to foreign
currency  denominated deposits
    
    
    35.5.a
    )
    
    
    (45,916
    )
    
    
    (20,240
    )
    
    
    7,405Software costs
    
    
    35.5.b
    )
    
    
    (23,952
    )
    
    
    (2,980
    )
    
    
    381Organizational costs
    
    
    35.5.c
    )
    
    
    (7,153
    )
    
    
    378
    
    
    
    1,442Vacation accrual
    
    
    35.6
    
    
    
    (19,175
    )
    
    
    (3,365
    )
    
    
    (3,286
    )Business combinationAcquisition of controlling interest in former Banco
Bansud S.A.
    
    
    35.7.a
    )
    
    
    4,630
    
    
    
    (68,483
    )
    
    
    (68,482
    )Merger with and into former Banco Bansud S.A.  a
downstream merger
    
    
    35.7.b
    )
    
    
    (527
    )
    
    
    (527
    )
    
    
    (527
    )Acquisition of Nuevo Banco Suquía S.A.- Merger with and
into Former Nuevo Banco Suquía S.A.
    
    
    35.7.c
    )
    
    
    3,925
    
    
    
    13,911
    
    
    
    (39,773
    )Acquisition of Banco de Tucumán S.A.
    
    
    35.7.d
    )
    
    
    (469
    )
    
    
    556
    
    
    
    Acquisition of Nuevo Banco Bisel S.A.
    
    
    35.7.e
    )
    
    
    (84,091
    )
    
    
    32,701
    
    
    
    Other
    
    
    35.7. f
    )
    
    
    1,336
    
    
    
    (272
    )
    
    
    27Derivative instruments
    
    
    35.10
    
    
    
    2,446
    
    
    
    
    
    
    
    Foreign currency translation
    
    
    35.11
    
    
    
    2,956
    
    
    
    1,294
    
    
    
    2,148Issuance and Offering Cost of Shares
    
    
    35.14
    
    
    
    
    
    
    
    15,664
    
    
    
    2,506Issuance Cost of Corporate Bonds
    
    
    35.15
    
    
    
    8,112
    
    
    
    10,288
    
    
    
    Net income before extraordinary items in accordance with US GAAP
    
    
    
    
    
    
    384,040
    
    
    
    357,959
    
    
    
    463,795Extraordinary Gain (see note 35.7.e))
    
    
    
    
    
    
    
    
    
    
    41,705
    
    
    
    Net income in accordance with US GAAP
    
    
    
    
    
    
    384,040
    
    
    
    399,664
    
    
    
    463,795
  F - 103




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2007
    
    
    2006
    
    
    2005Comprehensive incomeNet income in accordance with US GAAP
    
    
    384,040
    
    
    
    399,664
    
    
    
    463,795Other comprehensive income, net of tax:
    
    
    (15,475
    )
    
    
    (18,049
    )
    
    
    (99,322
    )Total comprehensive income, net in accordance with US GAAP
    
    
    368,565
    
    
    
    381,615
    
    
    
    364,473Earning per share before extraordinary gains in accordance with US
GAAP  stated in pesos
    
    
    0.56
    
    
    
    0.54
    
    
    
    0.76Earning per share for extraordinary gains in accordance with US
GAAP  stated in pesos
    
    
    
    
    
    
    0.06
    
    
    
    Total earning per share in accordance with US GAAP  stated in pesos
    
    
    0.56
    
    
    
    0.60
    
    
    
    0.76Weighted average number of shares Outstanding (in thousands)
    
    
    683,952
    
    
    
    666,478
    
    
    
    608,943
  F - 104




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Increase / (decrease)Consolidated Shareholders EquityAs of December 31,Ref.
    
    
    2007
    
    
    2006
    
    
    2005Shareholders equity in accordance with Central Bank rules
    
    
    
    
    
    
    2,707,706
    
    
    
    2,315,097
    
    
    
    1,489,652Income taxesDeferred taxes, net of allowances
    
    
    35.1.a
    )
    
    
    54,569
    
    
    
    21,819
    
    
    
    106,553Exposure to the Argentine public sector and private
securitiesLoans  Non-financial federal government sector
    
    
    35.2.a
    )
    
    
    (256,165
    )
    
    
    (270,492
    )
    
    
    (271,005
    )Secured Bonds
    
    
    35.2.b
    )
    
    
    
    
    
    
    
    
    
    
    (7,926
    )Other loans  Non-financial provincial
government sector
    
    
    35.2.c
    )
    
    
    
    
    
    
    
    
    
    
    (196
    )Compensatory Bonds
    
    
    35.2.d
    )
    
    
    
    
    
    
    
    
    
    
    (20,719
    )Instruments issued by Central Bank of
Argentina and other unlisted securities
    
    
    35.2.e
    )
    
    
    1,817
    
    
    
    20
    
    
    
    Loan origination fees
    
    
    35.3
    
    
    
    (20,163
    )
    
    
    (17,092
    )
    
    
    (11,483
    )Allowance for loan lossesCredit Card Loans
    
    
    35.4.b
    )
    
    
    (3,600
    )
    
    
    (1,233
    )
    
    
    (500
    )Impaired Loans  Non Financial Private Sector
and residents abroad
    
    
    35.4.c
    )
    
    
    (12,739
    )
    
    
    (4,513
    )
    
    
    (1,389
    )Interest recognition  non accrual loans
    
    
    35.4.d
    )
    
    
    (2,491
    )
    
    
    (2,377
    )
    
    
    (4,245
    )Intangible assetsJudgments due to court decisions related to
foreign currency  denominated deposits
    
    
    35.5.a
    )
    
    
    (108,788
    )
    
    
    (62,872
    )
    
    
    (42,632
    )Software costs
    
    
    35.5.b
    )
    
    
    (39,016
    )
    
    
    (15,064
    )
    
    
    (12,084
    )Organizational costs
    
    
    35.5.c
    )
    
    
    (8,656
    )
    
    
    (1,503
    )
    
    
    (1,881
    )Vacation accrual
    
    
    35.6
    
    
    
    (39,345
    )
    
    
    (20,170
    )
    
    
    (16,805
    )Business combinationAcquisition of controlling interest in former
Banco Bansud S.A.
    
    
    35.7.a
    )
    
    
    (11,944
    )
    
    
    (16,574
    )
    
    
    51,909Merger with and into former Banco Bansud S.A. 
a downstream merger
    
    
    35.7.b
    )
    
    
    (6,235
    )
    
    
    (5,708
    )
    
    
    (5,181
    )Acquisition of Nuevo Banco Suquía S.A.- Merger
with and into Former Nuevo Banco Suquía S.A.
    
    
    35.7.c
    )
    
    
    (35,440
    )
    
    
    (39,510
    )
    
    
    (53,421
    )Acquisition of Banco de Tucumán S.A.
    
    
    35.7.d
    )
    
    
    87
    
    
    
    556
    
    
    
    Acquisition of Nuevo Banco Bisel S.A.
    
    
    35.7.e
    )
    
    
    (9,685
    )
    
    
    75,303
    
    
    
    Other
    
    
    35.7. f
    )
    
    
    (8,397
    )
    
    
    (9,733
    )
    
    
    (9,461
    )Derivative instruments
    
    
    35.10
    
    
    
    2,446
    
    
    
    
    
    
    
    Issuance and Offering Cost of Shares
    
    
    35.14
    
    
    
    
    
    
    
    
    
    
    
    2,506Issuance Cost of Corporate Bonds
    
    
    35.15
    
    
    
    18,400
    
    
    
    10,288
    
    
    
    Shareholders equity in accordance with
US GAAP (1)
    
    
    
    
    
    
    2,222,361
    
    
    
    1,956,242
    
    
    
    1,191,692
 (1)
    
    Includes the effects of other comprehensive income.  F - 105




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 35.17.
    
    Set forth below are the accumulated other comprehensive income (loss) balances, as of
December 31, 2007, 2006 and 2005  net of related income tax effects:
 AccumulatedUnrealized
    
    
    OtherForeign
    
    
    Gains/
    
    
    ComprehensiveCurrency
    
    
    (losses) on
    
    
    Income /Items (1)
    
    
    securities (2)
    
    
    (Loss)Balances as of December 31, 2004
    
    
    13,465
    
    
    
    133,060
    
    
    
    146,525Current-fiscal year change
    
    
    (2,148
    )
    
    
    (150,655
    )(3)
    
    
    (152,803
    )Tax effects
    
    
    752
    
    
    
    52,729
    
    
    
    53,481Balances as of December 31, 2005
    
    
    12,069
    
    
    
    35,134
    
    
    
    47,203Current-fiscal year change
    
    
    (1,294
    )
    
    
    (26,474
    )
    
    
    (27,768
    )Tax effects
    
    
    453
    
    
    
    9,266
    
    
    
    9,719Balances as of December 31, 2006
    
    
    11,228
    
    
    
    17,926
    
    
    
    29,154Current-fiscal year change
    
    
    (2,956
    )
    
    
    (20,852
    )
    
    
    (23,808
    )Tax effects
    
    
    1,035
    
    
    
    7,298
    
    
    
    8,333Balances as of December 31, 2007
    
    
    9,307
    
    
    
    4,372
    
    
    
    13,679
 (1)
    
    See note 35.11.(2)
    
    See note 35.2.(3)
    
    The current-fiscal year change includes a decrease by 168,456 related to
realized gains from sales of available for sale securities and an increase by 17,801
related to unrealized gains. 35.18.
    
    Statement of Cash flowsAccording to SFAS 95 Statement of Cash Flows, a statement of cash flows for a period
shall report net cash provided or used by operating, investing, and financing activities
and the net effect of those flows on cash and cash equivalents during the period in a
manner that reconciles beginning and ending cash and cash equivalents.The statement of cash flows under Central Bank rules differs from the statement of cash
flows under US GAAP (see additionally note 4.4.s).The Banks transactions that did not provide an actual movement of funds in each year
(non cash transactions) were eliminated from the respective cash changes. The following
are the main non cash transactions, based on their book values under Central Bank rules:
 
    
    At December 31, 2007, 2006 and 2005, the Bank entered into transactions
with government securities exchanging non cash assets or liabilities for other non
cash assets or liabilities (mainly forward, unsettled spot and repurchase contracts
to buy or sell foreign currencies, listed Government and other securities at future
dates and exchanged non cash assets or liabilities for other non cash assets or
liabilities) with a book value of 543,354, 140,867 and 707,512, respectively.
    
    The securities received during 2005 as a result of the financial
compensation to financial institutions amounted to 126,320.
  F - 106




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 
 
    
    In 2005, the Bank incorporated the assets and liabilities of BET (Banco
Empresario de Tucumán S.A.).
    
    In 2005, the Macro Personal V financial trust was created,
transferring assets (consumer loans) for 70,029. The Trust issued Class A and B
certificates of participation. As December 31, 2005 the Bank held Class A and B
certificates of participation for 32,506.
    
    In the first six-months of 2005, the Bank exchanged City of Cordobas
provincial debt into Secured Bonds for an amount of 19,678.
    
    In 2005, the Bank received LEBAC (B.C.R.A. bills) from SEDESA for the
acquisition of BET for an amount of 34,723.
    
    In 2005, the Bank settled its 24,595 payable with the B.C.R.A. with
BOGAR 2018 (provincial secured bonds).
  Year ended December 31,2007
    
    
    2006
    
    
    2005Causes of changes in cash and cash equivalentsCash provided by (used in) operating activitiesInterest received on loans, leases and investments
    
    
    1,681,340
    
    
    
    1,132,778
    
    
    
    575,973Fees and commissions received
    
    
    658,863
    
    
    
    452,627
    
    
    
    302,738Other sources of cash
    
    
    23,884
    
    
    
    148,585
    
    
    
    44,298Less:Interest paid
    
    
    (701,232
    )
    
    
    (410,354
    )
    
    
    (284,936
    )Fees and commissions paid
    
    
    (146,606
    )
    
    
    (92,069
    )
    
    
    (59,193
    )Cash paid to suppliers and employees
    
    
    (873,034
    )
    
    
    (599,435
    )
    
    
    (406,821
    )(Increase) / Decrease from intangible assets
    
    
    (91,883
    )
    
    
    53,422
    
    
    
    (16,147
    )(Increase) / Decrease in other receivables from
financial intermediation and other assets
    
    
    (541,080
    )
    
    
    474,123
    
    
    
    287,142Other uses of cash
    
    
    (99,335
    )
    
    
    (128,830
    )
    
    
    (31,903
    )Net cash (used in) provided by operating activities
    
    
    (89,083
    )
    
    
    1,030,847
    
    
    
    411,151Plus:Cash provided by (used in) investing activitiesProceeds from sales of trading and investment
securities available for sale
    
    
    18,038,585
    
    
    
    22,931,533
    
    
    
    13,563,603Purchases of trading and investment securities
available for sale
    
    
    (18,396,607
    )
    
    
    (22,444,125
    )
    
    
    (14,094,343
    )(Increase) in loans and leases, net
    
    
    (3,674,912
    )
    
    
    (2,145,416
    )
    
    
    (663,121
    )Proceeds from sale of Bank premises and equipment
    
    
    3,808
    
    
    
    68,190
    
    
    
    4,165Purchases of Bank premises and equipment
    
    
    (81,469
    )
    
    
    (13,441
    )
    
    
    (33,478
    )Cash provided by the incorporation of certain
excluded assets and liabilities of BET
    
    
    
    
    
    
    
    
    
    
    40,838Purchase of Banco del Tucumán S.A. and Nuevo Banco
Bisel S.A., net of cash acquired
    
    
    
    
    
    
    411,977
    
    
    
    Net cash (used in) provide by investing activities
    
    
    (4,110,595
    )
    
    
    (1,191,282
    )
    
    
    (1,182,336
    )
  F - 107




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Year ended December 31,2007
    
    
    2006
    
    
    2005Cash provided by (used in) financing activitiesIncrease in deposits, net
    
    
    3,583,214
    
    
    
    1,752,639
    
    
    
    1,013,226Increase in long term borrowings
    
    
    734,767
    
    
    
    447,253
    
    
    
    Decrease in long term borrowings
    
    
    
    
    
    
    
    
    
    
    (149,034
    )Increase / (Decrease) in other short term liabilities, net
    
    
    474,624
    
    
    
    (984,613
    )
    
    
    (245,692
    )Capital increase
    
    
    182
    
    
    
    451,330
    
    
    
    Cash dividends paid
    
    
    (102,591
    )
    
    
    (68,395
    )
    
    
    (30,447
    )Net cash provided by financing activities
    
    
    4,690,196
    
    
    
    1,598,214
    
    
    
    588,053Increase / (Decrease) in cash and cash equivalents
    
    
    490,518
    
    
    
    1,437,779
    
    
    
    (183,132
    )Cash at the beginning of fiscal year
    
    
    2,626,908
    
    
    
    1,189,129
    
    
    
    1,372,261Cash at the end of fiscal year
    
    
    3,117,426
    
    
    
    2,626,908
    
    
    
    1,189,129
  Year ended December 31,2007
    
    
    2006 (1)
    
    
    2005 (1)Net income for the fiscal year
    
    
    495,200
    
    
    
    424,340
    
    
    
    262,746Adjustments to reconcile net income to net cash from
operating activities:Amortization and depreciation
    
    
    106,077
    
    
    
    68,534
    
    
    
    48,685Provision for loan losses and special reserves,
net of reversals
    
    
    40,388
    
    
    
    63,038
    
    
    
    5,248Net income from government and private securities
    
    
    (30,611
    )
    
    
    (11,936
    )
    
    
    (48,107
    )Foreign exchange differences
    
    
    (48,823
    )
    
    
    (37,857
    )
    
    
    (28,463
    )Equity (loss) / gain of unconsolidated subsidiaries
    
    
    890
    
    
    
    289
    
    
    
    (Increase) / Decrease from intangible assets
    
    
    (91,883
    )
    
    
    53,422
    
    
    
    (16,147
    )Income tax
    
    
    15,384
    
    
    
    42,919
    
    
    
    34,042Increase / (decrease) in other receivables from
financial intermediation and other assets
    
    
    (541,080
    )
    
    
    474,123
    
    
    
    287,142Net (increase) / decrease in interest receivable
and payable and other accrued income and expenses
    
    
    (6,607
    )
    
    
    39,620
    
    
    
    38,729Net (increase) in other sources or uses of cash
    
    
    (28,018
    )
    
    
    (85,645
    )
    
    
    (172,724
    )Net cash provided by (used in) operating activities
    
    
    (89,083
    )
    
    
    1,030,847
    
    
    
    411,151
 (1)
    
    See additionally note 4.2.  F - 108




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 35.19.
    
    Forward transactions pending settlementThe Bank enters into forward transactions pending settlement for trading purposes.Under Central Bank rules for such forward transactions, the Bank recognizes both a
receivable and a payable upon the agreement, which reflect the amount of cash, currency
or securities to be exchanged at the closing date. The receivable or payable
representing the receipt or delivery of securities or currency is stated at market
value.Under US GAAP, accounting for forward contracts are governed by SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities. This standard requires
that such derivatives be accounted for at fair value. The Bank does not apply hedge
accounting. The instruments outstanding at each balance sheet are short term and
recorded at their fair value.Had US GAAP been applied, the Banks assets and liabilities would be decreased by
approximately 303,203 and 127,152 as of December 31, 2007 and 2006, respectively.35.20.
    
    Fair value of financial instrumentsA significant portion of the Banks assets and liabilities are in short-term financial
instruments, with a remaining maturity of less than one year, and/or with variable
rates. These short-term and variable-rate financial instruments are considered to have a
fair value equivalent to their carrying value at the balance sheet date.SFAS 107 Disclosures about Fair Value of Financial Instruments requires disclosure of
fair value information about financial instruments, whether or not recognized on the
balance sheet, for which it is practicable to estimate fair value.For financial instruments with remaining maturity over a short term period and with
fixed-rates, and therefore not included above, the following methods and assumptions
were used to estimate their fair value.Unlisted Government and private securitiesFair value for these securities was taken to be equal to the present value of future
cash flows discounted at the year-end market interest rates for securities of similar
interest rate, credit risk and duration.Loans, assets subject to financial leases and other receivablesFair value is estimated, mainly, by discounting future cash flows using the current
rates at which loans would be made to borrowers with similar credit ratings and for the
same remaining maturities, considering the contractual terms in effect as of December
31, 2007 and 2006.DepositsThe Banks deposits as of December 31, 2007 and 2006, that have a remaining maturity of
under a short period were considered to have a fair value equivalent to their carrying
value at the balance sheet date while for those that have a remaining maturity of over a
short period (investments accounts, rescheduled deposits and time deposits), the fair
value was taken to be equal to the present value of future cash flows discounted at the
average year-end market interest rates for similar deposits.Other liabilities from financial intermediation and Other LiabilitiesFair value for long-term loans is estimated by discounting future cash flows using
current rates at which liabilities were received while fair value for short-term loans
was considered to be equivalent to their carrying value at the balance sheet.
  F - 109




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Subordinated corporate bonds
  Off-Balance sheet
   As of December 31,2007
    
    
    2006Carrying
    
    
    Estimated
    
    
    Carrying
    
    
    EstimatedAmount
    
    
    Fair Value
    
    
    Amount
    
    
    Fair ValueFINANCIAL ASSETSCash
    
    
    3,117,426
    
    
    
    3,117,426
    
    
    
    2,626,908
    
    
    
    2,626,908Government and private securities
    
    
    3,950,725
    
    
    
    3,952,882
    
    
    
    3,222,955
    
    
    
    3,222,975Loans
    
    
    10,009,417
    
    
    
    9,889,754
    
    
    
    6,527,105
    
    
    
    6,550,137Other receivables from financial intermediation
    
    
    1,226,295
    
    
    
    1,265,009
    
    
    
    914,574
    
    
    
    912,848Assets subject to financial leases
    
    
    367,968
    
    
    
    357,395
    
    
    
    278,640
    
    
    
    274,538Other receivables
    
    
    254,280
    
    
    
    253,846
    
    
    
    193,363
    
    
    
    193,49118,926,111
    
    
    
    18,836,312
    
    
    
    13,763,545
    
    
    
    13,780,897FINANCIAL LIABILITIESDeposits
    
    
    13,591,149
    
    
    
    13,594,055
    
    
    
    10,071,017
    
    
    
    10,044,318Other liabilities from financial intermediation
    
    
    2,571,036
    
    
    
    2,322,015
    
    
    
    1,237,116
    
    
    
    1,228,431Other Liabilities
    
    
    242,029
    
    
    
    242,029
    
    
    
    188,931
    
    
    
    188,931Subordinated Corporate Bonds
    
    
    490,695
    
    
    
    500,382
    
    
    
    507,844
    
    
    
    507,83116,894,909
    
    
    
    16,658,481
    
    
    
    12,004,908
    
    
    
    11,969,511
 35.21.
    
    Transfers of financial assetsAs mentioned in note 13, in order to securitize personal and pledge loans granted to
individuals, Nuevo Banco Bisel S.A., subsidiary of Banco Macro S.A., created, among
others, the trusts NBB Personales II and NBB Agroprendas I.For Central Bank rules, the interest retained by the Bank are accounted for at cost plus
accrued interest for the debt securities, and the equity method is used to account for
the residual interest in the trusts.
  F - 110




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 Under US GAAP, the accounting treatment for transfer of financial assets is as follows:
 1)
    
    Retained Interests in the TrustsSFAS 140 Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities, NBB Personales II and Agroprendas I qualify for sale
treatment. Nuevo Banco Bisel S.A. accounted for these investments as available for
sale securities, under SFAS 115. In order to determine their fair values, the Bank
discounted the estimated future cash flows from the trusts. Following SFAS 140 and
Emerging Issues Task Force 99-20, unrealized gains or losses over the amortized cost
basis are charged to equity through Other Comprehensive Income, unless unrealized
losses are deemed to be other than temporary, in which case they are charged to the
Statement of Income. The beneficial interests retained by the Bank were originally
recorded based on their allocated book value using the fair value allocation method.The amortized cost, unrealized gain/loss and fair value of Financial Trusts
qualifying for sale treatment as of December 31, 2006, are as follows:
 NetAmortized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gain
    
    
    ValueNBB Personales II
    
    
    10,529
    
    
    
    820
    
    
    
    11,349NBB Agroprendas I
    
    
    7,353
    
    
    
    560
    
    
    
    7,913Total
    
    
    17,882
    
    
    
    1,380
    
    
    
    19,262
 2)
    
    Transfers of financial assets not qualifying for sale accountingNBB Personales I does not qualify for sale treatment under SFAS 140 and therefore,
under US GAAP, it is recorded as a secured borrowing. The Bank reconsolidated the
assets and liabilities held by the financial trust.
  35.22.
    
    Joint ventureAs explained in note 3.4.a), the Bank participates in the Banco Macro S.A.  Siemens
Itron Business Services S.A.  Unión Transitoria de Empresas and in Montamat &
Asociados S.R.L.  Uniòn Transitoria de Empresas, (both joint ventures jointly
controlled having an interest of 50%). Under Central Bank rules this interest is
consolidated through the proportional consolidation method.Under US GAAP, that method of consolidation is not appropriate for such investments and
they are accounted for using equity method.Therefore, had US GAAP been applied as of December 31, 2007 and December 31, 2006, Other
assets should have been increased by 8,235 and 4,665, respectively, with an offsetting
decrease in various assets and liabilities accounts. Additionally, as of December 31,
2007 and December 31, 2006, Income from equity in other companies should have been
increased by 12,587 and 7,704, respectively, with an offsetting decrease in various
income and expense accounts, with no net effect in income or equity.35.23.
    
    Items in process of collectionThe Bank does not give accounting recognition to checks drawn against the Bank or other
Banks or other items to be collected, until such time as the related item clears or is
accepted. Such items are recorded by the Bank in Memorandum accounts. U.S. banks,
however, account for such items through balance sheet clearing accounts at the time the
items are presented for collection.Had US GAAP been applied, the Banks assets and liabilities would decrease by
approximately 136,754 and 193,841 as of December 31, 2007 and 2006, respectively.
  F - 111




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 35.24.
    
    AcceptancesForeign trade acceptances are not recorded on the balance sheet by the Bank. In
accordance with Regulation S-X, acceptances and related customer liabilities should be
recorded on the balance sheet. Adjustment required to state balance sheets in
accordance with Regulation S-X would be to increase assets (due from customers on
acceptances) and increase liabilities (bank acceptances outstanding) by 131,407 and
91,607 as of December 31, 2007 and 2006, respectively.35.25.
    
    Variable Interest Entities and other trustsAs explained in note 13., Banco Macro S.A., is involved in several trust agreements.Under Central Bank Rules, the Bank is not required to consolidate these trusts.Under US GAAP, FASB Interpretation No. 46 (R), Consolidation of Variable Interest
Entities addresses consolidation of variable interest entities, as defined in the
rules, which have certain characteristics.Paragraph 14 of FASB Interpretation No. 46(R) Consolidation of Variable Interest
Entities (FIN 46(R)) requires the primary beneficiary of a variable interest entity
(VIE) to consolidate that entity. The primary beneficiary of a VIE is the party that
absorbs a majority of the entitys expected losses, receives a majority of the entitys
expected residual returns, or both, as a result of ownership, contractual or other
financial interest in the entity.Except for the trusts described below, the trusts mentioned in note 13 are not variable
interest entities or the Bank is not the primary beneficiary. Therefore, the Bank did
not consolidate those trusts.
 a)
    
    Luján TrustAs of December 31, 2007 and 2006, under paragraph 5 of FASB Interpretation No. 46
(R), Luján Trust (see note 13.1.b)) is considered variable interest entity. In
accordance with paragraph 14 of FASB Interpretation No. 46 (R), the Bank is the
primary beneficiary of its investment in this vehicle. Therefore, the Bank includes
in its consolidated financial statements for US GAAP purposes, the assets,
liabilities and results of operations of Luján Trust. However, there are no
significant impacts in the US GAAP shareholders equity or net income
reconciliation.b)
    
    Bisel TrustAs of Decembre 31, 2007 and 2006, Nuevo Banco Bisel S.A. identified Bisel Trust as a
VIEs and the Bank as the primary beneficiary of its investment in this vehicle.
Therefore, the Bank includes in its consolidated financial statements for US GAAP
purposes, the assets, liabilities and results of operations of Bisel Trust. However,
there is no impact in the US GAAP shareholders equity or net income reconciliation
since the Bank recorded a valuation allowance of a 100% of the net assets of the
trust, as it considers such amounts not recoverable.c)
    
    Tucumán Trust, Onext Trust and Godoy Cruz TrustAs of Decembre 31, 2007 and 2006, under paragraph 5 of FASB Interpretation No. 46
(R), Tucumán Trust (see note 13.1.a)), Onext Trust (see note 13.1.h)) and Godoy Cruz
Trust (see note 13.1.e)), are considered variable interest entities. In accordance
with paragraph 14 of such Interpretation, the Bank is not the primary beneficiary
and, therefore, consolidation of these trusts is not appropriate.
 
  F - 112




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 d)
    
    BG TrustAs of December 31, 2006, the Bank had debt securities issued by BG Trust (see note
13.1.i)). This trust was considered a qualifying special purpose entity as
described in paragraph 35 of SFAS 140. In consequence, under paragraph 4.d) of FASB
Interpretation N° 46 (R), such trust was excluded of the scope of the
interpretation. There was no difference in classification under US GAAP.As of December 31, 2007, the abovementioned trust was cancelled.e)
    
    San Isidro TrustUnder paragraph 5 of FASB Interpretation No. 46 (R), San Isidro Trust (see note
13.1.d) is considered variable interest entity. In accordance with paragraph 14 of
FASB Interpretation No. 46 (R), the Bank is the primary beneficiary of its investment
in this vehicle. Therefore, the Bank includes in its consolidated financial
statements for US GAAP purposes, the assets, liabilities and results of operations of
San Isidro Trust. However, there are no significant impacts in the US GAAP
shareholders equity or net income reconciliation.
 As a result of consolidating the VIEs, total assets and liabilities would increase by
33,375 and 17,491 as of December 31, 2007 and 2006, respectively.35.26.
    
    Parent only financial statementsThe following are the unconsolidated balance sheets of Banco Macro S.A. as of December
31, 2007 and 2006 and the related unconsolidated statements of income, and cash flows
for the fiscal years ended December 31, 2007, 2006 and 2005. This information is
prepared in accordance with Central Bank rules. The investments in Nuevo Banco Bisel
S.A., Banco del Tucumán S.A. and the other subsidiaries are accounted for under the
equity method.
  F - 113




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 BALANCE SHEET (PARENT COMPANY ONLY)
 2007
    
    
    2006 (1)ASSETSCASHCash on hand
    
    
    547,966
    
    
    
    398,291Due from banks and correspondentsCentral Bank of Argentina
    
    
    1,597,354
    
    
    
    1,220,306Local Other
    
    
    4,123
    
    
    
    13,585Foreign
    
    
    159,713
    
    
    
    264,511Other
    
    
    185
    
    
    
    1082,309,341
    
    
    
    1,896,801GOVERNMENT AND PRIVATE SECURITIESHoldings for trading or financial intermediation
    
    
    236,677
    
    
    
    234,047Instruments issued by the Central Bank of Argentina
    
    
    2,592,135
    
    
    
    1,751,596Investments in listed private securities
    
    
    
    
    
    
    1,049Unlisted Government securities
    
    
    2
    
    
    
    Less: Allowances
    
    
    (27
    )
    
    
    (29
    )2,828,787
    
    
    
    1,986,663LOANSTo the non-financial government sector
    
    
    554,527
    
    
    
    593,148To the financial sectorInterfinancing
    
    
    65,760
    
    
    
    315,000Other financing to Argentine financial institutions
    
    
    94,496
    
    
    
    39,065Accrued interest, adjustments, foreign exchange
and quoted price differences receivables
    
    
    1,415
    
    
    
    2,526To the non-financial private sector and foreign residentsOverdrafts
    
    
    1,223,618
    
    
    
    759,092Documents
    
    
    725,157
    
    
    
    403,820Mortgage loans
    
    
    490,515
    
    
    
    348,700Pledged loans
    
    
    234,766
    
    
    
    238,954Personal loans
    
    
    2,380,854
    
    
    
    1,119,955Credit cards
    
    
    477,612
    
    
    
    339,361Other
    
    
    1,473,687
    
    
    
    978,003Accrued interest, adjustments, foreign exchange
and quoted price differences receivables
    
    
    113,598
    
    
    
    73,619Less: Unearned discount
    
    
    (19,666
    )
    
    
    (11,179
    )Less: Allowances
    
    
    (173,901
    )
    
    
    (167,353
    )7,642,438
    
    
    
    5,032,711
  F - 114




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2007
    
    
    2006 (1)OTHER RECEIVABLES FROM FINANCIAL INTERMEDIATIONCentral Bank of Argentina
    
    
    156,227
    
    
    
    96,314Amounts receivable for spot and forward sales pending settlement
    
    
    737,102
    
    
    
    337,422Securities and foreign currency receivable from spot and forward
purchases pending settlement
    
    
    110,180
    
    
    
    373,046Unlisted corporate bonds
    
    
    448
    
    
    
    934Receivables for forward transactions without delivery of underlying asset
    
    
    
    
    
    
    110Other receivables not covered by debtor classification standards
    
    
    325,096
    
    
    
    324,418Other receivables covered by debtor classification standards
    
    
    53,898
    
    
    
    43,552Less: Allowances
    
    
    (29,893
    )
    
    
    (26,742
    )1,353,058
    
    
    
    1,149,054ASSETS SUBJECT TO FINANCIAL LEASESAssets subject to financial leases
    
    
    301,317
    
    
    
    240,478Less: Allowances
    
    
    (3,986
    )
    
    
    (2,843
    )297,331
    
    
    
    237,635INVESTMENTS IN OTHER COMPANIESIn financial institutions
    
    
    1,336,016
    
    
    
    999,541Other
    
    
    35,152
    
    
    
    24,446Less: Allowances
    
    
    (697
    )
    
    
    (1,172
    )1,370,471
    
    
    
    1,022,815OTHER RECEIVABLESReceivables from sale of assets
    
    
    15,082
    
    
    
    17,363Minimum presumed income tax  Tax credit
    
    
    23,287
    
    
    
    40,950Other
    
    
    172,168
    
    
    
    119,670Accrued interest and adjustments receivable from sale of assets
    
    
    145
    
    
    
    178Other accrued interest and adjustments receivable
    
    
    58
    
    
    
    66Less: Allowances
    
    
    (15,215
    )
    
    
    (15,871
    )195,525
    
    
    
    162,356BANK PREMISES AND EQUIPMENT, NET
    
    
    293,472
    
    
    
    250,222OTHER ASSETS
    
    
    178,829
    
    
    
    174,270INTANGIBLE ASSETSGoodwill
    
    
    71,916
    
    
    
    81,164Organization and development costs, including amparos
    
    
    141,294
    
    
    
    85,501213,210
    
    
    
    166,665ITEMS PENDING ALLOCATION
    
    
    1,872
    
    
    
    810TOTAL ASSETS
    
    
    16,684,334
    
    
    
    12,080,002
 (1)
    
    See note 4.2.  F - 115




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2007
    
    
    2006 (1)LIABILITIESDEPOSITSFrom the non-financial government sector
    
    
    1,327,865
    
    
    
    942,229From the financial sector
    
    
    10,006
    
    
    
    2,798From the non-financial private sector and foreign residentsChecking accounts
    
    
    1,834,372
    
    
    
    1,323,113Savings accounts
    
    
    2,258,968
    
    
    
    1,705,084Time deposits
    
    
    4,647,858
    
    
    
    3,384,177Investment accounts
    
    
    63,063
    
    
    
    18,836Other
    
    
    295,401
    
    
    
    276,119Accrued interest, adjustments, foreign exchange and quoted
price differences payables
    
    
    51,865
    
    
    
    28,58310,489,398
    
    
    
    7,680,939OTHER LIABILITIES FROM FINANCIAL INTERMEDIATIONCentral Bank of Argentina  Other
    
    
    184,594
    
    
    
    205,033Banks and international institutions
    
    
    160,846
    
    
    
    174,603Non-subordinated Corporate Bonds
    
    
    780,590
    
    
    
    Amounts payable for spot and forward purchases pending settlement
    
    
    108,646
    
    
    
    282,657Securities and foreign currency to be delivered under spot and
forward sales pending settlement
    
    
    869,843
    
    
    
    402,626Financing received from Argentine financial institutionsInterfinancing  (received call)
    
    
    49,225
    
    
    
    25,000Other financing received from Argentine financial institutions
    
    
    90,648
    
    
    
    22,674Accrued interest payables
    
    
    54
    
    
    
    23Other
    
    
    397,733
    
    
    
    196,929Accrued interest, adjustments, foreign exchange and quoted price
differences payables
    
    
    47,399
    
    
    
    25,8402,689,578
    
    
    
    1,335,385OTHER LIABILITIESDividends payables
    
    
    1
    
    
    
    Profesional Fees
    
    
    
    
    
    
    9Other
    
    
    183,657
    
    
    
    149,988183,658
    
    
    
    149,997PROVISIONS
    
    
    121,888
    
    
    
    88,788SUBORDINATED CORPORATE BONDS
    
    
    490,695
    
    
    
    507,844ITEMS PENDING ALLOCATION
    
    
    1,411
    
    
    
    1,952TOTAL LIABILITIES
    
    
    13,976,628
    
    
    
    9,764,905SHAREHOLDERS EQUITY
    
    
    2,707,706
    
    
    
    2,315,097TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    
    16,684,334
    
    
    
    12,080,002
 (1)
    
    See note 4.2.  F - 116




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2007
    
    
    2006 (1)MEMORANDUM ACCOUNTSDEBIT-BALANCE ACCOUNTS
    
    
    7,291,099
    
    
    
    7,500,048Contingent
    
    
    2,568,102
    
    
    
    2,568,390Guarantees received
    
    
    2,284,111
    
    
    
    2,187,219Other not covered by debtors classification standards
    
    
    445
    
    
    
    380Contingent debit-banance contra accounts
    
    
    283,546
    
    
    
    380,791Control
    
    
    4,153,584
    
    
    
    4,437,885Receivables classified as uncollectibility
    
    
    636,624
    
    
    
    655,817Other
    
    
    3,394,966
    
    
    
    3,689,110Control debit-balance contra accounts
    
    
    121,994
    
    
    
    92,958Derivatives
    
    
    569,413
    
    
    
    493,773Notional value of call options taken
    
    
    
    
    
    
    119,345Notional value of put options taken
    
    
    
    
    
    
    50,649Notional value of forward transactions without delivery of underlying asset
    
    
    331,411
    
    
    
    Interest rate swap
    
    
    29,388
    
    
    
    Derivatives debit-balance contra accounts
    
    
    208,614
    
    
    
    323,779CREDIT BALANCE ACCOUNTS
    
    
    7,291,099
    
    
    
    7,500,048Contingent
    
    
    2,568,102
    
    
    
    2,568,390Unused portion of loans granted covered by debtors classification standards
    
    
    
    
    
    
    9,120Other guarantees provided covered by debtors
classification standards
    
    
    114,827
    
    
    
    238,764Other guarantees provided not covered by debtors
classification standards
    
    
    49,641
    
    
    
    43,289Other covered by debtors classification standards
    
    
    119,078
    
    
    
    86,548Contingent credit-balance contra accounts
    
    
    2,284,556
    
    
    
    2,190,669Control
    
    
    4,153,584
    
    
    
    4,437,885Checks to be credited
    
    
    121,994
    
    
    
    92,958Control credit-balance contra accounts
    
    
    4,031,590
    
    
    
    4,344,927Derivatives
    
    
    569,413
    
    
    
    493,773Notional value of call options sold
    
    
    
    
    
    
    50,612Notional value of put options sold
    
    
    113,776
    
    
    
    245,591Notional value of forward transactions without delivery of underlying asset
    
    
    94,838
    
    
    
    27,576Derivatives credit-balance contra accounts
    
    
    360,799
    
    
    
    169,994
 (1)
    
    See note 4.2.  F - 117




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 STATEMENTS OF INCOME (PARENT ONLY)
 2007
    
    
    2006 (1)
    
    
    2005 (1)FINANCIAL INCOMEInterest on cash
    
    
    11,536
    
    
    
    5,871
    
    
    
    4,794Interest on loans to the financial sector
    
    
    30,277
    
    
    
    13,644
    
    
    
    6,023Interest on overdrafts
    
    
    146,630
    
    
    
    96,222
    
    
    
    53,880Interest on documents
    
    
    59,695
    
    
    
    42,823
    
    
    
    32,157Interest on mortgage loans
    
    
    55,380
    
    
    
    44,733
    
    
    
    29,655Interest on pledged loans
    
    
    38,213
    
    
    
    39,427
    
    
    
    26,160Interest on credit card loans
    
    
    44,371
    
    
    
    27,992
    
    
    
    18,233Interest on other loans
    
    
    441,796
    
    
    
    223,333
    
    
    
    116,057Interest on other receivables from financial intermediation
    
    
    14,990
    
    
    
    13,876
    
    
    
    15,109Income from government and private securities, net
    
    
    290,509
    
    
    
    255,111
    
    
    
    146,365Income from guaranteed loans  Presidential Decree 1,387/01
    
    
    25,965
    
    
    
    26,656
    
    
    
    28,625CER (Benchmark Stabilization Coefficient) adjustment
    
    
    60,076
    
    
    
    76,928
    
    
    
    185,421CVS (Salary Variation Coefficient) adjustment
    
    
    1,603
    
    
    
    1,944
    
    
    
    1,987Difference
in quoted prices of gold and foreign currency
    
    
    40,987
    
    
    
    36,217
    
    
    
    28,347Other
    
    
    128,459
    
    
    
    67,625
    
    
    
    35,4791,390,487
    
    
    
    972,402
    
    
    
    728,292FINANCIAL EXPENSEInterest on checking accounts
    
    
    16,335
    
    
    
    8,092
    
    
    
    2,648Interest on savings accounts
    
    
    8,993
    
    
    
    5,976
    
    
    
    4,302Interest on time deposits
    
    
    371,664
    
    
    
    197,710
    
    
    
    98,872Interest on interfinancing received loans (received call)
    
    
    4,620
    
    
    
    780
    
    
    
    980Interest on other financing to financial institutions
    
    
    130
    
    
    
    172
    
    
    
    43Interest on other liabilities from financial intermediation
    
    
    70,606
    
    
    
    14,386
    
    
    
    15,819Interest on subordinated bonds
    
    
    49,858
    
    
    
    2,017
    
    
    
    1,806Other interest
    
    
    6,131
    
    
    
    10,426
    
    
    
    11,482Net loss from options
    
    
    
    
    
    
    284
    
    
    
    777CER adjustment
    
    
    24,953
    
    
    
    46,633
    
    
    
    117,068Contribution to Deposit Guarantee Fund
    
    
    15,939
    
    
    
    10,968
    
    
    
    9,701Other
    
    
    90,196
    
    
    
    44,908
    
    
    
    33,601659,425
    
    
    
    342,352
    
    
    
    297,099GROSS INTERMEDIATION MARGIN  GAIN
    
    
    731,062
    
    
    
    630,050
    
    
    
    431,193PROVISION FOR LOAN LOSSES
    
    
    71,045
    
    
    
    48,686
    
    
    
    69,339SERVICE-CHARGE INCOMERelated to lending transactions
    
    
    36,049
    
    
    
    30,032
    
    
    
    19,170Related to deposits
    
    
    297,491
    
    
    
    224,583
    
    
    
    181,815Other fees
    
    
    19,394
    
    
    
    20,499
    
    
    
    15,227Other
    
    
    128,261
    
    
    
    102,755
    
    
    
    78,029481,195
    
    
    
    377,869
    
    
    
    294,241
  F - 118




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2007
    
    
    2006 (1)
    
    
    2005 (1)SERVICE-CHARGE EXPENSEFees
    
    
    32,871
    
    
    
    29,323
    
    
    
    21,910Other
    
    
    88,898
    
    
    
    53,913
    
    
    
    36,486121,769
    
    
    
    83,236
    
    
    
    58,396ADMINISTRATIVE EXPENSESPersonnel expenses
    
    
    396,346
    
    
    
    323,913
    
    
    
    251,861Directors and statutory auditors fees
    
    
    31,932
    
    
    
    12,773
    
    
    
    13,824Other professional fees
    
    
    31,307
    
    
    
    33,527
    
    
    
    24,365Advertising and publicity
    
    
    45,590
    
    
    
    29,715
    
    
    
    22,667Taxes
    
    
    6,145
    
    
    
    6,044
    
    
    
    5,086Depreciation of equipment
    
    
    31,914
    
    
    
    23,604
    
    
    
    19,134Amortization of organization costs
    
    
    15,553
    
    
    
    12,290
    
    
    
    12,588Other operating expenses
    
    
    99,975
    
    
    
    85,126
    
    
    
    72,564Other
    
    
    16,424
    
    
    
    15,271
    
    
    
    13,777675,186
    
    
    
    542,263
    
    
    
    435,866NET INCOME FROM FINANCIAL INTERMEDIATION
    
    
    344,257
    
    
    
    333,734
    
    
    
    161,833OTHER INCOMEIncome from long-term investments
    
    
    232,277
    
    
    
    84,298
    
    
    
    17,978Penalty interest
    
    
    6,706
    
    
    
    5,254
    
    
    
    3,167Recovered loans and allowances reversed
    
    
    69,726
    
    
    
    162,840
    
    
    
    168,064CER adjustments
    
    
    104
    
    
    
    246
    
    
    
    191Other
    
    
    32,518
    
    
    
    32,493
    
    
    
    41,234341,331
    
    
    
    285,131
    
    
    
    230,634OTHER EXPENSEPenalty interest and charges payable to
Central Bank of Argentina
    
    
    36
    
    
    
    24
    
    
    
    33Charge for otherreceivables
uncollectibility and other allowances
    
    
    6,767
    
    
    
    20,649
    
    
    
    39,177CER adjustments
    
    
    
    
    
    
    
    
    
    
    3Amortization of differences from amparos
    
    
    19,278
    
    
    
    15,687
    
    
    
    14,100Depreciation and loss of other assets
    
    
    4,922
    
    
    
    3,398
    
    
    
    2,870Goodwill amortization
    
    
    9,250
    
    
    
    4,766
    
    
    
    839Other
    
    
    69,415
    
    
    
    78,001
    
    
    
    40,399109,668
    
    
    
    122,525
    
    
    
    97,421NET INCOME BEFORE INCOME TAX
    
    
    575,920
    
    
    
    496,340
    
    
    
    295,046INCOME TAX
    
    
    80,720
    
    
    
    72,000
    
    
    
    32,300NET INCOME FOR THE FISCAL YEAR
    
    
    495,200
    
    
    
    424,340
    
    
    
    262,746
 (1)
    
    See note 4.2.  F - 119




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 STATEMENTS OF CASH FLOWS (PARENT ONLY)
 2007 (1)Changes in cash and cash equivalentsCash and cash equivalents at beginning of fiscal year
    
    
    1,896,801Cash and cash equivalents at end of fiscal year
    
    
    2,309,341Net increase in cash and cash equivalents
    
    
    412,540Causes of changes in cashOperating activitiesNet collections / (payments):- Government and private securities
    
    
    118,097- Loans- to the financial sector
    
    
    224,438- to the nonfinacial government sector
    
    
    26,089- to the nonfinacial private sector and foreign residents
    
    
    (2,004,478
    )- Other receivables from financial intermediation
    
    
    (659,434
    )- Assets under financial lease
    
    
    (9,072
    )- Deposits- to the financial sector
    
    
    7,208- to the nonfinacial government sector
    
    
    381,401- to the nonfinacial private sector and foreign residents
    
    
    2,096,784- Other liabilities from financial intermediation- Others (except liabilities included under financing activities)
    
    
    71,688Collections related to service-charge income
    
    
    480,208Payments related to service-charge expenses
    
    
    (120,791
    )Administrative expenses paid
    
    
    (617,548
    )Payments of organization and development expenses
    
    
    (49,762
    )Net collections related to punitive interest
    
    
    6,706Differences from payments related to court orders
    
    
    (28,589
    )Collections of dividends from other companies
    
    
    850Other collections from other income and losses
    
    
    10,200Net payments from other operating activities
    
    
    (19,953
    )Payment of income tax / minimum presumed income tax
    
    
    (68,498
    )Net cash flows used in operating activities
    
    
    (154,456
    )Investing activitiesNet payments for bank premises and equipment
    
    
    (69,288
    )Net payments for other assets
    
    
    (11,696
    )Net payments for purchases of investing in other companies (2)
    
    
    (48,151
    )Net cash flows used in investing activities
    
    
    (129,135
    )
  F - 120




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2007 (1)Financing activitiesNet collections / (payments):- Nonsubordinated corporate bonds (3)
    
    
    749,464- Central Bank of Argentina- Other
    
    
    (18,316
    )- Banks and International Organizations
    
    
    (13,757
    )- Subordinated corporate bonds
    
    
    (13,240
    )- Financing received from financial institutions in Argentina
    
    
    83,035Payment of dividends
    
    
    (102,591
    )Net cash flows provided by financing activities
    
    
    684,595Financial income and holding gains on cash and cash equivalents
    
    
    11,536Net cash and cash equivalents increase
    
    
    412,540
 (1)
    
    See notes 4.2. and 4.4.s).(2)
    
    Including the effect deriving from the subscription of Banco del
Tucumán S.A. capital increase mentioned in note 3.6.(3)
    
    See notes 10.c.2) and 10.c.3).  F - 121




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 STATEMENTS OF CASH FLOWS (PARENT ONLY)
 2006 (1)
    
    
    2005 (1)Changes in CashCash and due from banks at the beginning of year
    
    
    1,090,467
    
    
    
    1,010,210Increase in cash
    
    
    806,334
    
    
    
    78,770Cash and due from banks at end of year
    
    
    1,896,801
    
    
    
    1,088,980Causes of changes in cashCash provided by (used in) operating activitiesFinancial income collected
    
    
    1,005,480
    
    
    
    771,836Services-charge income collected
    
    
    378,263
    
    
    
    294,221Financial expenses paid
    
    
    (365,715
    )
    
    
    (277,264
    )Services-charge expenses paid
    
    
    (82,520
    )
    
    
    (58,079
    )Administrative expenses paid
    
    
    (494,034
    )
    
    
    (399,661
    )Net cash provided by operating activities
    
    
    441,474
    
    
    
    331,053Other sources of cashDecrease in government and private securities
    
    
    967,476
    
    
    
    Decrease in other receivable from financial Intermediation
    
    
    
    
    
    
    533,388Increase in deposits
    
    
    1,289,254
    
    
    
    1,382,813Increase in other liabilities from financial intermediation
    
    
    231,134
    
    
    
    Increase in other liabilities (2)
    
    
    451,089
    
    
    
    1,865Capital increase
    
    
    469,500
    
    
    
    Other sources of cash
    
    
    128,300
    
    
    
    40,794Total other sources of cash
    
    
    3,536,753
    
    
    
    1,958,860Total sources of cash
    
    
    3,978,227
    
    
    
    2,289,913
  F - 122




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 2006 (1)
    
    
    2005 (1)Uses of cashIncrease in government and private securities
    
    
    
    
    
    
    (677,471
    )Increase in loans
    
    
    (1,727,663
    )
    
    
    (503,185
    )Increase in other receivables from financial intermediation
    
    
    (131,212
    )Increase in other assets (3)
    
    
    (1,156,453
    )
    
    
    (232,170
    )Decrease in other liabilities from financial intermediation
    
    
    
    
    
    
    (736,549
    )Decrease in other liabilities
    
    
    (205
    )
    
    
    (4,585
    )Cash dividends paid
    
    
    (68,395
    )
    
    
    (30,447
    )Other uses of cash
    
    
    (87,965
    )
    
    
    (26,736
    )Total uses of cash
    
    
    (3,171,893
    )
    
    
    (2,211,143
    )Increase in cash
    
    
    806,334
    
    
    
    78,770
 (1)
    
    See note 4.2.(2)
    
    Including the effect resulting from the issuance of subordinated
corporate bonds.(3)
    
    Including the effect deriving from the purchase of Banco del Tucumán S.A.
and Nuevo Banco Bisel S.A. 35.27.
    
    New accounting pronouncements (US GAAP)
 a)
    
    Fair Value Measurements  SFAS 157In September 2006, the FASB issued SFAS No. 157 Fair Value Measurements. This
Statement defines fair value, establishes a framework for measuring fair value in
accordance with generally accepted accounting principles (GAAP), and expands
disclosures about fair value measurements. This Statement applies under other
accounting pronouncements that require or permit fair value measurements, the Board
having previously concluded in those accounting pronouncements that fair value is the
relevant measurement attribute. Accordingly, this Statement does not require any new
fair value measurements. However, for some entities, the application of this
Statement will change current practice. A single definition of fair value, together
with a framework for measuring fair value, should result in increased consistency and
comparability in fair value measurements. The expanded disclosures about the use of
fair value to measure assets and liabilities should provide users of financial
statements with better information about the extent to which fair value is used to
measure recognized assets and liabilities, the inputs used to develop the
measurements, and the effect of certain of the measurements on earnings for the
period. This Statement shall be effective for financial statements issued for fiscal
years beginning after November 15, 2007 and interim periods within those fiscal
years. The Bank in currently evaluating the effect on its financial statements of
implementation of this accounting standard.b)
    
    Fair Value Option for Financial Assets and Financial Liabilities  SFAS
159In February 2007, the FASB issued SFAS No. 159 The Fair Value Option for Financial
Assets and Financial Liabilities  Including an Amendment of FASB Statement No. 115,
which provides a fair value option to measure many financial instruments and certain
other assets and liabilities at fair value on an instrument-by-instrument basis. SFAS
No. 159 is effective for the Bank beginning in the 2008 first quarter. The Bank is
currently evaluating the effect on its financial statements of implementation of this
accounting standard.
  F - 123




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##### Table of Contents



BANCO MACRO S.A. AND SUBSIDIARIES
 c)
    
    Business Combinations   SFAS 141 (R)In December 2007, the FASB issued SFAS No. 141 (Revised 2007), Business
Combinations (SFAS No. 141(R)) which requires the recognition of assets acquired,
liabilities assumed, and any noncontrolling interest in an acquiree at the
acquisition date fair value with limited exceptions. SFAS No. 141(R) will change the
accounting treatment for certain specific items and includes a substantial number of
new disclosure requirements. SFAS No. 141(R) is effective for fiscal years beginning
on or after December 15, 2008. The Bank has not evaluated the impact of the adoption
of this statement.d)
    
    Noncontrolling Interests in Consolidated Financial Statements  SFAS
160In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in
Consolidated Financial Statements  an Amendment of ARB No. 51 (SFAS No. 160),
which establishes new accounting and reporting standards for noncontrolling interest
(minority interest) and for the deconsolidation of a subsidiary. SFAS No. 160 also
includes expanded disclosure requirements regarding the interests of the parent and
its noncontrolling interest. SFAS No. 160 is effective for fiscal years, beginning on
or after December 15, 2008. The Bank has not evaluated the impact of the adoption of
this statement.e)
    
    Disclosures about Derivative Instruments and Hedging Activities  SFAS
161In March 2008 the FASB issued SFAS No. 161, Disclosures about Derivative Instruments
and Hedging Activities, which intends to improve financial reporting about
derivative instruments and hedging activities by requiring enhanced disclosures to
enable investors to better understand their effects on an entitys financial
position, financial performance, and cash flows. The new standard also improves
transparency about the location and amounts of derivative instruments in an entitys
financial statements; how derivative instruments and related hedged items are
accounted for under SFAS 133; and how derivative instruments and related hedged items
affect its financial position, financial performance, and cash flows. SFAS 161 is
effective for financial statements issued for fiscal years and interim periods
beginning after November 15, 2008. The Bank has not evaluated the impact of the
adoption of this statement.f)
    
    The Hierarchy of Generally Accepted Accounting Principles  SFAS 162In May 2008 the FASB issued SFAS No. 162 The Hierarchy of Generally Accepted
Accounting Principles which intends to improve financial reporting by identifying a
consistent framework, or hierarchy, for selecting accounting principles to be used in
preparing financial statements that are presented in conformity with US GAAP for
nongovernmental entities. SFAS 162 shall be effective 60 days following the SECs
approval of the Public Company Accounting Oversight Board (PCAOB) amendments to AU
Section 411, The Meaning of Present Fairly in Comformity With Generally Accepted
Accounting Principles. The Bank has not evaluated the impact of the adoption of this
statement.
  F - 124




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    Description1.1
    
    
    Amended and Restated Bylaws of Banco Macro S.A., as amended April 28, 2006, is incorporated by
reference to the annual report on Form 20-f filed on July 13, 2007 (File No. 001-32-827).2.1
    
    
    Deposit Agreement among the registrant, The Bank of New York, as depositary, and the holders from
time to time of American depositary shares issued thereunder, including the form of American
depositary receipts, incorporated by reference to the Registration Statement on Form F-1, as
amended, filed by Banco Macro S.A. on March 20, 2006 (File No. 333-130901).8
    
    
    See Note 4.1 to our financial statements for information regarding our subsidiaries.12.1
    *
    
    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.12.2
    *
    
    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.13.1
    *
    
    Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.13.2
    *
    
    Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 *
    
    Filed herein