Jorge Scarinci: Hi, Nicolas. How are you. In terms of your first question, banks are not allowed to be long in dollars in the spot position. The only way that you can be long in dollars up to 25% of the equity is through either futures or dollar-linked bonds, which are subscribed in pesos. So what you are seeing that we are long in dollars is because we are having some positions in dollar link. And also depending on the structure of the report that you are seeing, sometimes the dual bonds are also use a kind of — to be long in dollars. But in terms of assets and liabilities in U.S. dollar purely, you have to be completely hedged. So you can use some bonds that are in pesos that are dollar linked or dual just to be long in dollars up to 25% of the equity.
And that’s what we are — that’s the picture that we are showing that you are looking at, that’s why we are long in dollars through those bonds, basically, no other asset in U.S. dollars. Again, peso-denominated bonds that are tied to the evolution of the dollar of the official effects or either inflation or the official effects, the higher, the dual. So that’s to be clear about that. On your question about Itau and the $50 million. Yes, we have $50 million, and we are going to use these dollars to pay for Itau, we do not need — of course, the transaction has to be approved by the Central Bank.
Nicolas Riva: Jorge, thanks very much for that. Maybe just one follow-up on the first point. So again, if I just look at the balance sheet, your FX position in dollars net long is $2.6 billion. Can you clarify if there’s a 100% devaluation, you are not going to show a $2.6 billion gain because of that?
Jorge Scarinci: Of course, no. What we are going to — I mean, the impact on the balance sheet is going to be neutral in the sense that you have the same assets in dollars and liabilities in dollars. So in accountancy or accountable, we are going to have a zero percent impact on the P&L. On the net FX position of 2.5 (ph). What we are going to have is basically the impact on the bonds that are tied to the evolution of the effects which are the dollar-link and the dual bonds, if this 100% devaluation is higher than inflation, the impact that you are going to see is in those basically assets. And of course, it’s not going to be $2.6 billion impact. Of course, it’s going to be a bit less than that. But again, since we could be trading the dollar link and the dual bonds.
This is a picture as of June. So now we are reaching September. So there may be some changes there. But the impact on devaluation of 100% on the official effect, it’s going to have an impact basically on the bonds that we have tied to the dollar.
Nicolas Riva: Okay. Thanks very much Jorge.
Jorge Scarinci: You are welcome.
Operator: [Operator Instructions] Our next question comes from Carlos Gomez of HSBC. Please go ahead.
Carlos Gomez: Hi, Jorge. Congratulations on the results and on the acquisition. On the second, can you give us an idea about the expected time line as to when you might receive approval and we understand it’s not in your hands that will be clearly on Central Bank. But when is it reasonable to expect that you would get a possession of the asset? And also, I understand that the value agreed is based on the value of the bank as of March — sorry, April of this year and that it adjusts over time, could you clarify that? And the second question is about your earnings. I’m actually a bit surprised because you are right. This first half has been very good, or rather the second quarter has been really good. Things look better, but we have seen your real ROE fluctuate a lot.
I mean, are you confident that you’re going to get that closer to 20% ROE before the end of the year. And is there anything in the horizon by whoever comes in the shares of the economy that could impact the profitability of the banks in the short and medium terms? Thank you.
Jorge Scarinci: Hi, Carlos. Thanks. On the approval, honestly, we think that it could happen before the end of this year, that is our view. But honestly, again, because we are having elections, could be delayed a little bit, but the idea, what we have in mind is that this might be approved before the end of 2023 here. In terms of the operations, I couldn’t get exactly the question that you asked, but basically, I mean, this is reaffirming what we have been saying many, many times that we want to keep on growing in Argentina. I think that the acquisition of Itau that is — has a lot of value for Banco Macro not only because we think that we are paying a good price on this operation, because also it’s increasing the number of branches, mainly in BATT and Greater Buenos Aires in the north part of Greater Buenos Aires.
At some point, it is almost doubling our presence in this area. And we have been highlighting that this is the area where we want to grow. And also, we have been stating that if there was a potential acquisition, our main target was to increase our presence in this area. So we are confirming what we have been saying. And also, it’s giving us some, of course, new clients on the commercial and the retail area. So I think it is a very good acquisition and very valuable for Banco Macro and more taking consideration the price that we are paying. And on your third question about ROE. I think that we are going to have a third quarter that’s going to be as good or maybe, better than the second one, basically because the — so far, the securities or the bonds are performing really well.
So that’s why we think that — honestly, and now in the fourth quarter, it’s a big question mark because a lot on the performance of the quarter will be tied to the outcome on the election. So that’s why our – the target that we are putting in the area of 20% is because there’s some uncertainty on how many securities could be performing in the fourth quarter. But of course, if the performance in that quarter continues on the trend that we are showing, ROE in real terms, it’s going to be above 20%, but just put some interrogation mark on the fourth quarter.
Carlos Gomez: That’s very clear. Thank you so much.
Jorge Scarinci: Thanks, Carlos.
Operator: There are no further questions at this time. This concludes the question-and-answer session. I will now turn the call over to Mr. Nicolas Torres for final considerations.
Nicolas Torres: Thank you all for your interest in Banco Macro. We appreciate your time and look forward to speaking with you again. Have a good day.
Operator: The conference has now concluded. Thank you for attending today’s presentation and you may now disconnect.
