Banco Macro
Encyclopedia
Banco Macro is the largest domestically-owned private bank in Argentina
, and the fifth-largest by deposits and lending.
founded by Mario Brodersohn, José Dagnino Pastore and Alieto Guadagni, in 1976. The institution was purchased by a competing arbitrageur, Jorge Brito
, in 1985. Granted authorization to operate as a commercial bank
by the Central Bank of Argentina in 1988, Banco Macro operated as a wholesale bank until 1995, becoming a pioneer in the Argentine corporate bonds market. During this interim. its business revolved around money market
investments, trading of government and corporate bonds and financial services for medium and larger companies.
The Mexican Peso Crisis of 1994-95
led to a substantial change in business strategy, shifting the bank's focus on retail banking
, and encouraging investment in underserved market areas with high growth potential. Macro acquired capital stock in numerous privatized provincial banks during 1996: Banco Misiones (93%), Banco Salta
(98%) and Banco Jujuy (100%). It later acquired Banco Noroeste C.L. and participated in the restructuring of a number of struggling, private-sector and cooperative banks: Almafuerte Coop. Ltdo., Mayo S.A., Israelita de Córdoba S.A. and Mendoza S.A. (increasing its presence in the northern and central areas of Argentina).
Macro purchased 60% of Banco Bansud in December 2001. This entity was a leader private bank in the southern part of Argentina, with significant background in its area of influence and a large branch network; but it had been adversely affected by that year's economic and financial crisis
. Following the August 2002 purchase of Scotiabank Quilmes, Macro acquired the remaining shares of Banco Bansud and, in December 2004, it acquired Nuevo Banco Suquía S.A. - becoming the third-ranking private Argentine bank in terms of net assets, the fourth in terms of deposits and the fifth in terms of credit outstanding to the private sector.
Macro acquired Banco Empresario del Tucumán and Banco del Tucumán, in 2005. These two institutions were made a part of the Macro Group, maintaining Banco del Tucumán as financial agent for the province and incorporating the acquired bank's branches. Macro then acquired Nuevo Banco Bisel S.A., in 2006. Bisel's acquisition made Macro the largest private, domestically-owned bank in Argentina, with around 7,900 employees and 440 branches,. In March, 2006, the bank changed its corporate name from Macro Bansud to Macro, and was listed in the New York Stock Exchange
(NYSE), becoming the first Argentine company to be listed abroad since 1997.
The merger with Nuevo Banco Suquía S.A. was completed in 2007. This further advanced Macro's presence in the interior provinces of Argentina, adding over 250 branches. Macro is the only Argentine bank to have enjoyed 28 consecutive quarters of net profit as of early 2009; in 2008, it earned a net, pre-tax income of US$288 million. The bank's credit outstanding totalled over US$3 billion in March 2009 and its deposits, over US$4.8 billion (making it the fifth-largest in Argentina).
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
, and the fifth-largest by deposits and lending.
Overview
Banco Macro began operations as Financiera Macro, a brokerage specializing in arbitrageArbitrage
In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices...
founded by Mario Brodersohn, José Dagnino Pastore and Alieto Guadagni, in 1976. The institution was purchased by a competing arbitrageur, Jorge Brito
Jorge Horacio Brito
-Life and times:Jorge Brito was born in Salta in 1952 and was raised by his mother, who was widowed in 1962. He founded Anglia, a brokerage, in 1976 and, in 1985, purchased a competing brokerage, Financiera Macro. He was named Chairman of the Board of Directors in June 1988 and cultivated close...
, in 1985. Granted authorization to operate as a commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
by the Central Bank of Argentina in 1988, Banco Macro operated as a wholesale bank until 1995, becoming a pioneer in the Argentine corporate bonds market. During this interim. its business revolved around money market
Money market
The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Trading in the money markets involves Treasury bills, commercial paper, bankers' acceptances, certificates of deposit,...
investments, trading of government and corporate bonds and financial services for medium and larger companies.
The Mexican Peso Crisis of 1994-95
1994 economic crisis in Mexico
The 1994 Economic Crisis in Mexico, widely known as the Mexican peso crisis, was caused by the sudden devaluation of the Mexican peso in December 1994....
led to a substantial change in business strategy, shifting the bank's focus on retail banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
, and encouraging investment in underserved market areas with high growth potential. Macro acquired capital stock in numerous privatized provincial banks during 1996: Banco Misiones (93%), Banco Salta
Salta
Salta is a city in northwestern Argentina and the capital city of the Salta Province. Along with its metropolitan area, it has a population of 464,678 inhabitants as of the , making it Argentina's eighth largest city.-Overview:...
(98%) and Banco Jujuy (100%). It later acquired Banco Noroeste C.L. and participated in the restructuring of a number of struggling, private-sector and cooperative banks: Almafuerte Coop. Ltdo., Mayo S.A., Israelita de Córdoba S.A. and Mendoza S.A. (increasing its presence in the northern and central areas of Argentina).
Macro purchased 60% of Banco Bansud in December 2001. This entity was a leader private bank in the southern part of Argentina, with significant background in its area of influence and a large branch network; but it had been adversely affected by that year's economic and financial crisis
Argentine economic crisis (1999-2002)
The Argentine economic crisis was a financial situation, tied to poilitical unrest, that affected Argentina's economy during the late 1990s and early 2000s...
. Following the August 2002 purchase of Scotiabank Quilmes, Macro acquired the remaining shares of Banco Bansud and, in December 2004, it acquired Nuevo Banco Suquía S.A. - becoming the third-ranking private Argentine bank in terms of net assets, the fourth in terms of deposits and the fifth in terms of credit outstanding to the private sector.
Macro acquired Banco Empresario del Tucumán and Banco del Tucumán, in 2005. These two institutions were made a part of the Macro Group, maintaining Banco del Tucumán as financial agent for the province and incorporating the acquired bank's branches. Macro then acquired Nuevo Banco Bisel S.A., in 2006. Bisel's acquisition made Macro the largest private, domestically-owned bank in Argentina, with around 7,900 employees and 440 branches,. In March, 2006, the bank changed its corporate name from Macro Bansud to Macro, and was listed in the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
(NYSE), becoming the first Argentine company to be listed abroad since 1997.
The merger with Nuevo Banco Suquía S.A. was completed in 2007. This further advanced Macro's presence in the interior provinces of Argentina, adding over 250 branches. Macro is the only Argentine bank to have enjoyed 28 consecutive quarters of net profit as of early 2009; in 2008, it earned a net, pre-tax income of US$288 million. The bank's credit outstanding totalled over US$3 billion in March 2009 and its deposits, over US$4.8 billion (making it the fifth-largest in Argentina).