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Business Wire
3 days ago
- Business
- Business Wire
Grupo Supervielle Reports 2Q25 Results
BUENOS AIRES, Argentina--(BUSINESS WIRE)-- Grupo Supervielle S.A. (NYSE: SUPV; BYMA: SUPV), ('Supervielle' or the 'Company') a universal financial services group headquartered in Argentina with a nationwide presence, today reported results for the three- and six-month period ended June 30, 2025. Starting 1Q20, the Company began reporting results applying Hyperinflation Accounting, in accordance with IFRS rule IAS 29 ('IAS 29') as established by the Central Bank. Management Commentary Commenting on second quarter 2025 results, Patricio Supervielle, Grupo Supervielle's Chairman & CEO, noted: ' Our strategic transition toward a more credit-driven balance sheet continues, although at a slower pace in an election year and contingent on monetary policy, with loans accounting for a growing share of total assets in a context of moderating inflation. Both loan and US dollar deposit growth expanded above industry levels, while wider spreads supported margin expansion across client lending and our investment portfolio. Net income increased 62% sequentially, while ROE reached 6% in real terms. Our loan book increased 14% sequentially and 71% year-on-year in real terms. Growth was led by corporate lending, while retail loan growth moderated during the quarter as we applied more stringent underwriting criteria in personal loans reflecting early signs of asset quality deterioration. Deposits increased 6% sequentially and 42% year-on-year, with U.S. dollar-denominated deposits reaching record levels, gaining 110 basis points in market share over the past year. Net Interest Margin improved 160 basis points sequentially to 20.8%, driven by the recovery in both lending and investment portfolio margins. We made tangible progress across our four key strategic initiatives, which remain central to how we engage clients, build loyalty, drive cross-sell, and support sustainable growth: Our Remunerated Account is helping deepen primary banking relationships and expand our deposit base. AR$ savings accounts rose 13% sequentially, 3.5 percentage points above market growth, driven by a 27% increase in payroll account balances. U.S. dollar savings accounts grew 6.2%, outperforming the system by 10 percentage points, supported by an 18% increase in payroll deposits. Among SMEs, checking account balances rose 14% in pesos and 43% in dollars, exceeding market growth by 30 percentage points. Tienda Supervielle, our official online store on Mercado Libre, is gaining momentum with over 500,000 sessions to date. This growing engagement reflects the value of integrating e-commerce into our digital ecosystem and is contributing to increased customer principality through daily interactions beyond traditional banking. Adoption of our GenAI-powered WhatsApp channel is seeing growing interactions, underscoring WhatsApp's role as a seamless, scalable service platform. This quarter, we introduced new transactional functionalities including credit card purchase authorizations, public transportation card and mobile phone top-ups, further expanding the range of everyday banking interactions available through this channel. Lastly, recent initiatives to drive synergies between the Bank and IOL, our leading retail online brokerage platform, are beginning to deliver results. During the quarter, over 4,700 IOL clients placed 28 million in US$-denominated time deposits at the bank, nearly one-third for terms beyond 180 days. Since adding the IOL button in our mobile app just two months ago, investment activity among Bank customers has increased. Meanwhile, with only 3% of IOL clients currently banking with us, we are launching a targeted cross-sell campaign offering a suite of attractive products to deepen engagement and broaden our retail base. While the macro environment continues to show signs of stabilization, the lower inflationary context has affected delinquency dynamics requiring both banks and borrowers to adapt. This, together with our decision to moderate origination in retail loans which increased 130% year-on-year, brought the NPL ratio to 2.7%, broadly in line with historical levels. We view this as a natural phase of credit normalization, and in line with industry dynamics. In response, we are actively fine-tuning our origination and collection strategies to preserve portfolio health as credit continues the recovery trend. Driving efficiency remains a core pillar of our strategy, alongside initiatives aimed at long-term growth. The operational improvements we've implemented are yielding meaningful results, with operating expenses down 13% year-to-date as we continue to simplify our structure and reduce fixed costs. We are now reinforcing our focus on unlocking further synergies and accelerating cost savings across the organization. Looking ahead, although macro conditions were mixed and present some temporary challenges, the structural direction of policy, anchored in deregulation, fiscal consolidation and a more open economy, continues to support the financial sector's gradual recovery. That said, with rising uncertainty ahead of the upcoming legislative elections, 2025 is shaping up to be a transition year, with strong loan growth expected to resume in early 2026 as visibility improves. With a solid CET1 ratio of 14%, a leaner and more agile operating model, and a platform that integrates banking, insurance, asset management, and online investing, we are well positioned to capture emerging opportunities and create long-term value for all stakeholders,' concluded Mr. Supervielle. Second quarter 2025 Highlights Attributable Net Income of AR$13.6 billion in 2Q25, compared to AR$23.8 billion in 2Q24 and AR$8.4 billion in 1Q25. ROAE was 5.8% in 2Q25, compared to 10.4% in 2Q24 and 3.5% in 1Q25. Profitability improved QoQ, driven by higher Net Financial Income supported by sustained credit demand, wider spreads, and a recovery in market-related income as treasury yields stabilized. Operating expenses increased sequentially due to seasonal effects in 1Q25; however, the underlying trend of improving operational efficiency has been reinforced, reflecting disciplined cost management and ongoing structural initiatives across the organization. Loan loss provisions increased in line with loan portfolio growth and the corresponding expected credit loss (ECL) requirements, consistent with the Company's increased exposure to retail lending in an environment of decelerating inflation and credit normalization, and in line with industry dynamics. Net fee income declined during the quarter, as banking fees were not adjusted, though repricing is underway in the third quarter. Fee-based income was also impacted by a lower contribution from our brokerage business following industry trend in the quarter since the lifting of Fx restrictions. YoY, ROAE declined, primarily due to a lower Net Financial Margin, as 1H24 benefited from an exceptionally strong base driven by extraordinary gains on government securities. Strong cost discipline contributed to real-term reductions in operating expenses and improved efficiency. Net fee income rose in real terms during the period, supported by effective repricing across core banking services and higher asset management fees. Loan loss provisions increased, in line with the expansion of the retail loan portfolio and associated ECL requirements. 1H25 ROAE was 4.7% compared to 22.1% in 1H24, reflecting the transitioning process in 2025 and the high base of 1H24 extraordinary financial gains. ROAA was 1.0% in 2Q25 compared to 2.3% in 2Q24 and 0.6% in 1Q25. In 1H25, ROAA was 0.8% compared to 4.8% in 1H24. Profit before income tax reached AR$13.7 billion in 2Q25, up 26.9% from AR$10.8 billion in 1Q25 but down 68.2% from AR$43.1 billion in 2Q24. The sequential increase was mainly driven by an 11.5%, or AR$21.4 billion, rise in Net Financial Income, reflecting wider spreads, partially offset by a 31.8%, or AR$10.7 billion, increase in loan loss provisions, in line with loan growth and the expected seasoning of the retail portfolio as vintages mature. Personnel and administrative expenses increased 4.3%, or AR$5.0 billion, primarily due to seasonal factors in the first quarter. Net Service Fee Income decreased 12.5%, or AR$6.0 billion, as banking fees had no repricing during the period but is underway in the third quarter. Additionally, fee-based income was impacted by a lower contribution from the brokerage business following industry trend of a decline in retail customers' transactions following the lifting of Fx restrictions. Year-over-year, the decline in profit before income tax was mainly driven by 26.8%, or AR$76.0 billion, decrease in Net Financial Income, reflecting lower market-related income, alongside a 173.0%, or AR$28.2 billion, increase in loan loss provisions consistent with strong growth in loans and in particular in retail lending, and is according with higher lending activity across industry. These effects were partially mitigated by lower personnel and administrative expenses, as well as higher fee and insurance income. In 1H25, Profit Before Income Tax totaled AR$24.5 billion, significantly below the AR$162.7 billion recorded in 1H24, which benefited from an exceptionally strong financial margin driven by extraordinary gains on government securities. Net Financial Income reached AR$207.4 billion in 2Q25, up 11.5% QoQ and down 26.8% YoY. The QoQ improvement was mainly driven by a 10.3%, or AR$13.8 billion, increase in Client Net Financial Income, supported by stronger spreads and higher loan volumes, and a 14.8%, or AR$7.6 billion, increase in Market-related Net Financial Income, as treasury bond yields stabilized following the sharp correction observed in the previous quarter amid uncertainty preceding the IMF agreement reached in April. The YoY decline reflects a 65.2%, or AR$111.3 billion, reduction in Market-related Net Financial Income, partially offset by a 31.4%, or AR$35.4 billion, increase in Client Net Financial Income as the Company shifts its asset mix toward private-sector lending. Adjusted Net Financial Income (Net Financial Income + Result from exposure to inflation) totaled AR$178.0 billion in 2Q25, down 11.5% YoY, but increased 25.7% QoQ. Net Interest Margin (NIM) improved to 20.8% in 2Q25, from 19.2% in 1Q25 but declined from 36.3% in 2Q24. The QoQ improvement reflects higher spreads in client lending margin and a recovery in investment portfolio margin. Loan portfolio NIM rose to 22.8% from 21.6%, supported by wider spreads and sustained credit demand, underscoring the strength of our core banking operations. Investment portfolio NIM increased to 20.1% from 17.1%, as treasury bond yields stabilized following the sharp correction in the previous quarter. Overall, total spreads expanded during the quarter, with increases of 10% in client margins and 15% in investment portfolio margins. The YoY decline in NIM reflects lower spreads in a context of lower inflation and interest rates which reduced funding costs but also led to lower asset yields. The total NPL ratio rose to 2.7% in 2Q25, from 0.8% in 2Q24 and 2.0% in 1Q25. This increase is consistent with the industry-wide trend of rising delinquency in retail loans and remains in line with historical levels. It reflects a normalization of credit following the 130% YoY growth in retail loans, which typically carry higher NPL ratios than corporate loans, and the impact of a lower inflation environment on borrowers' repayment dynamics. In this context, we have started to moderate origination in the retail segment. We continue to refine our origination and collection strategies to preserve portfolio quality. Loan loss provisions (LLPs) totaled AR$44.5 billion in 2Q25, up 31.8% QoQ and 173.0% YoY. These increases reflect loan growth and a YoY shift in the loan portfolio mix toward retail loans, which entail higher provisioning than commercial loans in line with our strategic focus on expanding retail lending during last year. QoQ increase also reflects the expected seasoning of the retail portfolio as vintages mature. Net loan loss provisions, equivalent to LLPs net of recovered charged-off loans and reversed allowances, amounted to AR$43.1 billion in 2Q25, compared to AR$16.9 billion in 2Q24 and AR$32.8 billion in 1Q25. Efficiency ratio was 60.9% in 2Q25, compared with 50.6% in 2Q24 and 59.6% in 1Q25. The QoQ performance reflects a 4.2% increase in personnel, administrative expenses, and D&A, due to seasonal effects in previous quarter; however, the underlying trend of improving operational efficiency remains intact, reflecting disciplined cost management and ongoing structural initiatives across the organization. This was partially offset by a 1.9% increase in Revenues. Excluding severance payments and early retirement charges in 2Q25 associated with the Company's ongoing efficiency program, the adjusted efficiency ratio would have been 58.2%. In 1H25, personnel and administrative expenses declined 13.0% compared to 1H24, reflecting the successful execution of the cost-control initiatives and ongoing structural adjustments. Loans to Deposits Ratio was 71.7% as of June 30, 2025, compared to 59.5% as of June 30, 2024, and 66.5% as of March 31, 2025. The QoQ performance reflects a 14.0% increase in Loans outpacing Deposit growth of 5.7%. In addition, longer-tenor funding from corporate notes grew 52.4% QoQ, or AR$123.8 billion, supporting loan growth. Total Deposits amounted to AR$4,157.4 billion, increasing 5.7% QoQ and 42.2% YoY in real terms. AR$ deposits totaled AR$3,019.2 billion, increasing 0.9% QoQ and 23.5% YoY in real terms. The YoY performance in AR$ deposits was mainly explained by the following increases: i) 102.6%, or AR$233.3 billion, in time deposits from individuals and corporates, ii) 17.9%, or AR$248.1 billion, in wholesale institutional funding, reflecting quarter-end asset and liability management, iii) 13.9%, or AR$44.3 billion, in checking accounts supported by higher transactional volumes from commercial clients; and iv) 11.5%, or AR$41.7 billion, in savings accounts. The YoY performance in checking and savings accounts also reflect early results of the remunerated account to payroll customers and to SMEs customers which we launched in early April 2025. The YoY comparison also reflects a lower deposit base in 2Q24, when real interest rates were highly negative. The QoQ performance in AR$ deposits was mainly explained by a 29.2%, or AR$91.4 billion, increase in savings accounts, reflecting the typical end-of-quarter seasonality in June and early results of the remunerated account launched in early April. This was partially offset by the following decreases: i) 2.7%, or AR$46.1 billion, in wholesale institutional funding, also linked to quarter-end asset and liability management, ii) 6.5%, or AR$25.1 billion, in checking accounts, and iii) 2.8%, or AR$ 13.2 billion, in time deposits from individuals and corporates. Checking accounts balances from SMEs grew as a result of the remunerated account product launched in April but was offset by a decline in checking accounts from other commercial customers. Foreign currency deposits amounted to US$953.2 million, increasing 153.8% YoY and 15.5% QoQ, outperforming industry growth which was 72.6% YoY and 1.4% QoQ. This strong performance reflects the successful execution of the remunerated account strategy implemented during the quarter to attract dollar-denominated deposits. The YoY variation also captures higher inflows following the tax amnesty launched on August 18, 2024 and from the growth of IOL's customers deposits. FX deposits represented 27% of total deposits at quarter-end, compared with 16% as of June 30, 2024, and 24% as of March 31, 2025. Total Assets increased 6.1% QoQ and 29.9% YoY, reaching AR$6,034.3 billion as of June 30, 2025. The QoQ performance was primarily driven by 13.3%, or AR$ 336.0 billion, increase in Net Loans partially offset by a 11.9%, or AR$ 177.3 billion, decline in the investment portfolio. Since 1Q24, the Company has progressively diversified its asset mix, significantly increasing exposure to private-sector lending while reducing reliance on the investment portfolio. The evolution of assets in 2Q25 reinforces this trend, reflecting a deliberate shift toward a more loan-centric balance sheet, a strategy expected to continue through the remainder of 2025 and 2026. Total loans to total assets as of June 30, 2025, increased to 47.6%, up 1,100 bps from 36.5% in 2Q24, and 300 bps from 44.6% in 1Q25. The leverage ratio (Assets to Shareholders' Equity) increased 140 bps YoY to 6.5x, from 5.1x as of June 30, 2024, and 50 bps QoQ, from 6.0x as of March 31, 2025. Despite the increase, leverage remains well-below the 8x level reached in 2018, underscoring the ample balance sheet capacity to support future growth. Loans amounted to AR$2,979.9 billion as of June 30, 2025, increasing 132.7% since March 31, 2024, 71.2% YoY, and 14.0% QoQ in real terms. Total Net Loans, reached AR$2,871.5 billion as of June 30, 2025, increasing 131.1% since March 31, 2024, significantly outpacing the industry's 118% growth over the same period. On a quarterly basis, net loans grew 13.3%, again exceeding the industry's 11.2% growth. While YoY growth of 69.1% trailed below industry's 81.9%, the Company's loan portfolio remains ahead of peers in a cumulative basis, having anticipated the credit expansion and captured early-cycle growth, resulting in a stronger base. Loan growth since 1Q24 reflects the Company's strategic decision to accelerate origination across both commercial and retail segments in anticipation of rising credit demand amid declining inflation and lower market interest rates. The QoQ increase was primarily driven by commercial lending, while retail loan growth moderated following the implementation of more stringent underwriting policies. Common Equity Tier 1 Ratio (CET1) was 13.9% as of June 30, 2025, decreasing 740 bps YoY and 140 bps QoQ. The QoQ decline reflects the expansion in Risk-weighted assets driven by loan growth the dividend payment of AR$28.8 billion, as well as higher deductions on deferred tax assets. In 1Q25, CET1 had a non-recurring impact of 1,400 bps following the implementation of new credit and operational risk requirements, effective January and March 2025, respectively. These new rules, introduced through Central Bank Communication 8067, apply to a subset of financial institutions outside the largest systemic banks and impose substantially higher capital requirements for operational risk than the framework applied to systemic banks. There is potential for CET1 ratio improvement if regulators authorize Group 2 Banks, including Supervielle, the adoption of the Basel III operational risk framework currently applicable to systemic institutions. If the Company were subject to the same operational risk capital treatment as the largest systemic institutions, the CET1 ratio would have been 16.7%.
Yahoo
27-05-2025
- Business
- Yahoo
Grupo Supervielle Reports 1Q25 Results
1Q25 Net Income at AR$7.9 billion with ROAE at 3.5%. Navigated a Transitional Macro Environment; Maintain Confidence in Our Core Strengths to Drive Growth BUENOS AIRES, Argentina, May 27, 2025--(BUSINESS WIRE)--Grupo Supervielle S.A. (NYSE: SUPV; BYMA: SUPV), ("Supervielle" or the "Company") a universal financial services group headquartered in Argentina with a nationwide presence, today reported results for the three-month period ended March 31, 2025. Starting 1Q20, the Company began reporting results applying Hyperinflation Accounting, in accordance with IFRS rule IAS 29 ("IAS 29") as established by the Central Bank. Management Commentary Commenting on first quarter 2025 results, Patricio Supervielle, Grupo Supervielle's Chairman & CEO, noted: "We continued to make solid progress in advancing our long-term strategy across the organization. At Banco Supervielle, we are accelerating our transformation by scaling differentiated solutions that strengthen our position against both fintechs and traditional banks. At the core of our strategy are four key initiatives aimed at meeting and anticipating customer expectations: First, responding to the growing demand for simple, high-yield solutions, in April we launched our innovative Remunerated Account. Supervielle is the only bank in Argentina offering daily interest on both Payroll and SME accounts, in pesos and U.S. dollars. This innovation enhances the customer experience and reinforces our deposit base. We are confident it will also support organic client growth and deepen primary banking relationships. Second, as part of our client-centric innovation strategy, this month we launched Tienda Supervielle on Mercado Libre, Latin America's leading e-commerce platform, becoming the first bank to have an official online store hosted on their marketplace and also fully accessible through the Supervielle mobile app. This initiative marks a key milestone in our Super App journey, expanding our digital ecosystem and redefining how customers interact with financial services by connecting everyday commerce and banking in a single, fully digital experience. Third, as part of our ongoing efforts to elevate the customer experience and improve efficiency, we are integrating Gen AI-powered interactions via WhatsApp, enhancing accessibility while also ensuring clients can always reach a human when needed, combining technology with the personalized service that defines Supervielle. And fourth, we continue to expand IOL, our leading online brokerage platform, which delivers integrated investment solutions to both its clients and the Bank's customer base. While Argentina faced temporary headwinds this quarter, we remain confident in the underlying strength and momentum of our business. After a strong start to the year, industry loan demand eased amid a mix of external factors, including tight peso liquidity, FX volatility, and heightened devaluation expectations ahead of the IMF agreement. We view these pressures as transitory and remain focused on capturing opportunities as macro conditions stabilize. Client lending remained resilient, underscoring the strength of our core banking operations, while a sharp correction in treasury bond prices, amid uncertainty and prior to the confirmation of strong IMF support in April, negatively impacted investment portfolio performance. Our loan book increased 3% sequentially and 104% year-over-year in real terms, gaining 40 bps in market share over the past 12 months. Retail remained the main growth driver, now accounting for 52% of total loans, up from 48% in 4Q24 and 36% a year ago. Asset quality remains healthy. The NPL ratio rose to 2%, reflecting credit normalization following the rapid expansion in retail lending. Importantly, delinquency remains within expected levels embedded in pricing models, and we continue to refine origination and collection strategies to safeguard portfolio quality. On the funding side, deposits increased up 8% quarter-over-quarter, with market share rising 30 basis points to 3%. Together, these trends underscore the resilience of our business and provide a strong foundation for sustained, profitable growth. Net fee income rose 32% year-on-year in real terms, supported by strong growth in banking fees, brokerage and asset management revenues, and deeper insurance penetration. In line with our efficiency strategy, operating expenses declined 12% sequentially and 17% year-over-year, reflecting continued progress on structural cost reduction and a leaner operating model. Argentina is entering a new chapter. Recent measures, including the lifting of FX controls supported by the IMF and multilateral organizations, mark a shift toward greater openness and stability. This turning point is restoring confidence and creating conditions for long-term investment. At Supervielle, we are committed to supporting this transition by providing the credit and financial solutions our clients need to grow, staying close to those who produce, invest, and build. With a strong CET1 ratio of 15.3%, we are well-positioned to capture the opportunities ahead. I am proud of the digitally integrated, customer-centric platform we've built across banking, insurance, asset management, and online investing which is designed to give clients greater control, transparency, and simplicity. As Argentina moves toward normalization, our innovation-led strategy and evolving platform will be key to deepening engagement, expanding our client base, and driving profitable growth," concluded Mr. Supervielle. First quarter 2025 Highlights Attributable Net Income of AR$7.9 billion in 1Q25, compared to net gains of AR$72.5 billion in 1Q24 and AR$30.6 billion in 4Q24. ROAE was 3.5% in 1Q25, compared to 33.9% in 1Q24 and 13.9% in 4Q24. While profitability declined sequentially, underlying performance continued to reflect the successful execution of the Company's focus on loan growth. Client Net Financial Margin increased in the mid to high teens, supported by higher spreads and loan volumes, while operating efficiency improved, with expenses declining in real terms. These positive changes were more than offset by: i) a sharp reduction in Market-related Net Financial Margin, reflecting lower yields on government securities, and ii) an increase in loan loss provisions due to the expansion of the retail portfolio which entails higher provisioning and the release of LLPs in 4Q24 resulting from improved macroeconomic conditions embedded in the ECL model. Lower YoY ROAE reflects an exceptionally high base in 1Q24, which had recorded extraordinary high results on government securities.. ROAA was 0.6% in 1Q25 compared to 7.4% in 1Q24 and 2.6% in 4Q24. Profit before income tax totaled AR$10.2 billion in 1Q25 compared to AR$112.9 billion in 1Q24 and AR$24.6 billion in 4Q24. The sequential decline was mainly explained by: i) a 46.6%, or AR$ 43.3 billion, decline in market related Net Financial Income due to lower prices of government securities, ii) a 118.0%, or AR$ 16.7 billion, increase in loan loss provisions driven by strong growth in retail lending which entails higher provisioning and a lower comparison base in 4Q24, and iii) a 5.2%, or AR$ 645.1 million, decline in brokerage fees amid increased market volatility. These effects were partially offset by: i) a 17.2%, or AR$ 18.5 billion, increase in client net financial income, ii) a 12.3%, or AR$ 17.4 billion, decline in operating expenses, iii) a 3.4%, or AR$ 1.2 billion, increase in fee income from our banking business as fees repriced above inflation, and iv) a 2.8%, or AR$ 208.0 billion, increase in revenues from the asset management business. Revenues (net financial income + net fee income – turnover tax) totaled AR$206.9 billion in 1Q25, compared to AR$477.2 billion in 1Q24 and AR$232.9 billion in 4Q24. Net Financial Income totaled AR$175.4 billion in 1Q25, down 62.4% YoY and 12.4% QoQ. The QoQ decline was mainly driven by a 46.6%, or AR$43.3 billion, decrease in the Market-related Net Financial Income, reflecting lower yields on government securities amid uncertainty prior to the agreement reached with the IMF in April. In contrast, the Client Net Financial Income rose 17.2%, or AR$18.5 billion, supported by strong spreads on increased loan volumes. Adjusted Net Financial Income (Net Financial Income + Result from exposure to inflation) totaled AR$133.6 billion in 1Q25, decreasing 55.6% YoY, and 17.7% QoQ. Net Interest Margin (NIM) declined to 19.2% in 1Q25 from 24.9% in 4Q24. Margins from client lending remained resilient, with loan portfolio NIM improving to 21.2% from 20.7% in 4Q24, reflecting wider spreads, underscoring the strength of our core banking operations. In contrast, Investment Portfolio NIM dropped significantly to 17.7% from 33.6%, reflecting a sharp correction in treasury bond yields. The YoY comparison reflects the normalization of extraordinary factors that drove the unusually high 61.8% NIM in 1Q24, including gains from the sale of government securities previously recorded at amortized cost, high AR$ spreads on government securities and loans, and lower funding costs following the removal of deposit rate floors that quarter. The total NPL ratio stood at a healthy 2.0% in 1Q25, up from 1.1% in 1Q24 and 1.3% in 4Q24. This increase reflects a normalization in credit quality following robust YoY growth of 196% and 58% (in real terms) in retail and commercial loan portfolios, respectively. The stronger expansion in the retail segment shifted the loan mix toward retail exposure, which typically carries higher NPL ratios than corporate lending. Despite this, the current NPL ratio remains below historical averages and is in line with the industry benchmark of 2% as of March 2025. Moreover, delinquency remains within expected levels embedded in product pricing, while we continue to refine our origination and collection strategies to preserve portfolio quality Loan loss provisions (LLPs) totaled AR$31.8 billion in 1Q25, up 155.9% YoY and 80.9% QoQ. These increases reflect loan growth and a shift in the loan portfolio mix towards retail loans which entail higher provisioning than commercial loans. Retail loan volumes increased 12.8% QoQ and 196.3% YoY in real terms. The QoQ performance also reflects one-time provision releases recorded in the previous quarter, following an update to the macroeconomic variables in the expected credit loss model that incorporated a more favorable macroeconomic outlook. Net loan loss provisions, equivalent to LLPs net of recovered charged-off loans and reversed allowances, amounted to AR$30.9 billion in 1Q25, compared to AR$13.1 billion in 1Q24 and AR$14.2 billion in 4Q24. The Coverage Ratio stood at 152.7% as of March 31, 2025, compared to 263.7% as of March 31, 2024, and 169.2% as of December 31, 2024. Efficiency ratio was 59.6% in 1Q25, compared with 33.8% in 1Q24 and 63.8% in 4Q24. The QoQ improvement was explained by a 12.3% decline in personnel and administrative expenses, along with D&A, partially offset by a 6.1% decrease in Revenues. Excluding severance payments and early retirement charges in 1Q25 related to the Company's efficiency program, the efficiency ratio would have been 57.6%. Loans to Deposits Ratio was 66.5% as of March 31, 2025, compared to 43.6% as of March 31, 2024, and 69.7% as of December 31, 2024. Total Deposits amounted to AR$3,709.7 billion, increasing 109.0% YoY and 16.9% QoQ in nominal terms. Total private sector deposits reached AR$ 3,576.6 billion, increasing 112.4% YoY and 18.1% QoQ in nominal terms, outpacing the industry, which reported growth of 95.4% YoY and 5.6% QoQ. In real terms, total deposits increased 34.0% YoY and 7.7% QoQ, while private sector deposits increased 36.2% YoY and 8.8% QoQ in real terms, above industry trends. Average deposits amounted to AR$ 3,245.4 billion, increasing 19.8% YoY and 9.0% QoQ in real terms. AR$ deposits totaled AR$2,823.3 billion, increasing 86.6% YoY and 21.6% QoQ in nominal terms, compared to industry growth of 88.4% YoY and 9.2% QoQ. In real terms, AR$ deposits increased 19.7% YoY and 12.0% QoQ. Foreign currency deposits amounted to US$825.4 million, increasing 170.1% YoY and 0.1% QoQ, outperforming industry FX deposits which increased 73.6% YoY and declined 6.7% QoQ. Total Assets increased 34.0% YoY and 9.1% QoQ, reaching AR$5,365.3 billion as of March 31, 2025. Total average Assets increased 27.1% YoY and 5.9% QoQ. The QoQ performance was primarily driven by a 30.2%, or AR$321.1 billion, increase in the balance of government securities, reflecting quarter-end assets and liability management. Net Loans increased by 1.9%, or AR$44.3 billion, during the same period. Average balances reflect a more moderate QoQ increase of 13.7%, or AR$154.3 billion, in government securities, while average loans increased 14.0%, AR$291.6 billion, reflecting sustained lending activity throughout the quarter. Since 1Q24, the Company has steadily diversified its asset portfolio, sharply increasing its exposure to private-sector loans while reducing its investment portfolio. Although loan participation declined slightly at the end of 1Q25 due to a temporary increase in government securities, the overall trend reflects a strategic shift towards a more loan-centric balance sheet, expected to continue through 2025. The leverage ratio (Assets to Shareholders' Equity) increased 140 bps YoY to 6.0x, from 4.6x as of March 31, 2024, and 50 bps QoQ, from 5.5x as of December 31, 2024. Despite the increase, leverage remains significantly below the 8x level reached in 2018, underscoring the ample capacity to support future growth. Loans increased 218.4% YoY, and 11.5% QoQ in nominal terms, reaching AR$2,466.6 billion as of March 31, 2025. In real terms, gross loans increased 104.2% YoY and 2.7% QoQ. The YoY performance reflects the Company's strategic decision since 1Q24 to accelerate loan origination across both commercial and retail segments, anticipating higher credit demand driven by declining inflation and lower market interest rates. The QoQ increase was particularly supported by strong retail loan demand, particularly in personal loans, car loans and credit cards. Common Equity Tier 1 Ratio (CET1) was 15.3% as of March 31, 2025, decreasing 990 bps YoY and 80 bps QoQ. The QoQ decrease in CET1 reflects a non-recurring impact of 1,400 bps from the implementation of the new credit and operational risk requirements, effective January and March 2025 respectively. Moreover, the CET1 ratio reflects the expansion in Risk-weighted assets driven by loan growth, as well as higher deductions on deferred tax assets. These were partially offset by organic capital creation together with inflation adjustment of capital. View source version on Contacts Ana Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
27-05-2025
- Business
- Business Wire
Grupo Supervielle Reports 1Q25 Results
BUENOS AIRES, Argentina--(BUSINESS WIRE)-- Grupo Supervielle S.A. (NYSE: SUPV; BYMA: SUPV), ('Supervielle' or the 'Company') a universal financial services group headquartered in Argentina with a nationwide presence, today reported results for the three-month period ended March 31, 2025. Starting 1Q20, the Company began reporting results applying Hyperinflation Accounting, in accordance with IFRS rule IAS 29 ('IAS 29') as established by the Central Bank. Management Commentary Commenting on first quarter 2025 results, Patricio Supervielle, Grupo Supervielle's Chairman & CEO, noted: " We continued to make solid progress in advancing our long-term strategy across the organization. At Banco Supervielle, we are accelerating our transformation by scaling differentiated solutions that strengthen our position against both fintechs and traditional the core of our strategy are four key initiatives aimed at meeting and anticipating customer expectations: First, responding to the growing demand for simple, high-yield solutions, in April we launched our innovative Remunerated Account. Supervielle is the only bank in Argentina offering daily interest on both Payroll and SME accounts, in pesos and U.S. dollars. This innovation enhances the customer experience and reinforces our deposit base. We are confident it will also support organic client growth and deepen primary banking relationships. Second, as part of our client-centric innovation strategy, this month we launched Tienda Supervielle on Mercado Libre, Latin America's leading e-commerce platform, becoming the first bank to have an official online store hosted on their marketplace and also fully accessible through the Supervielle mobile app. This initiative marks a key milestone in our Super App journey, expanding our digital ecosystem and redefining how customers interact with financial services by connecting everyday commerce and banking in a single, fully digital experience. Third, as part of our ongoing efforts to elevate the customer experience and improve efficiency, we are integrating Gen AI-powered interactions via WhatsApp, enhancing accessibility while also ensuring clients can always reach a human when needed, combining technology with the personalized service that defines Supervielle. And fourth, we continue to expand IOL, our leading online brokerage platform, which delivers integrated investment solutions to both its clients and the Bank's customer base. While Argentina faced temporary headwinds this quarter, we remain confident in the underlying strength and momentum of our business. After a strong start to the year, industry loan demand eased amid a mix of external factors, including tight peso liquidity, FX volatility, and heightened devaluation expectations ahead of the IMF agreement. We view these pressures as transitory and remain focused on capturing opportunities as macro conditions stabilize. Client lending remained resilient, underscoring the strength of our core banking operations, while a sharp correction in treasury bond prices, amid uncertainty and prior to the confirmation of strong IMF support in April, negatively impacted investment portfolio performance. Our loan book increased 3% sequentially and 104% year-over-year in real terms, gaining 40 bps in market share over the past 12 months. Retail remained the main growth driver, now accounting for 52% of total loans, up from 48% in 4Q24 and 36% a year ago. Asset quality remains healthy. The NPL ratio rose to 2%, reflecting credit normalization following the rapid expansion in retail lending. Importantly, delinquency remains within expected levels embedded in pricing models, and we continue to refine origination and collection strategies to safeguard portfolio quality. On the funding side, deposits increased up 8% quarter-over-quarter, with market share rising 30 basis points to 3%. Together, these trends underscore the resilience of our business and provide a strong foundation for sustained, profitable growth. Net fee income rose 32% year-on-year in real terms, supported by strong growth in banking fees, brokerage and asset management revenues, and deeper insurance penetration. In line with our efficiency strategy, operating expenses declined 12% sequentially and 17% year-over-year, reflecting continued progress on structural cost reduction and a leaner operating model. Argentina is entering a new chapter. Recent measures, including the lifting of FX controls supported by the IMF and multilateral organizations, mark a shift toward greater openness and stability. This turning point is restoring confidence and creating conditions for long-term investment. At Supervielle, we are committed to supporting this transition by providing the credit and financial solutions our clients need to grow, staying close to those who produce, invest, and build. With a strong CET1 ratio of 15.3%, we are well-positioned to capture the opportunities ahead. I am proud of the digitally integrated, customer-centric platform we've built across banking, insurance, asset management, and online investing which is designed to give clients greater control, transparency, and simplicity. As Argentina moves toward normalization, our innovation-led strategy and evolving platform will be key to deepening engagement, expanding our client base, and driving profitable growth,' concluded Mr. Supervielle. First quarter 2025 Highlights Attributable Net Income of AR$7.9 billion in 1Q25, compared to net gains of AR$72.5 billion in 1Q24 and AR$30.6 billion in 4Q24. ROAE was 3.5% in 1Q25, compared to 33.9% in 1Q24 and 13.9% in 4Q24. While profitability declined sequentially, underlying performance continued to reflect the successful execution of the Company's focus on loan growth. Client Net Financial Margin increased in the mid to high teens, supported by higher spreads and loan volumes, while operating efficiency improved, with expenses declining in real terms. These positive changes were more than offset by: i) a sharp reduction in Market-related Net Financial Margin, reflecting lower yields on government securities, and ii) an increase in loan loss provisions due to the expansion of the retail portfolio which entails higher provisioning and the release of LLPs in 4Q24 resulting from improved macroeconomic conditions embedded in the ECL model. Lower YoY ROAE reflects an exceptionally high base in 1Q24, which had recorded extraordinary high results on government securities.. ROAA was 0.6% in 1Q25 compared to 7.4% in 1Q24 and 2.6% in 4Q24. Profit before income tax totaled AR$10.2 billion in 1Q25 compared to AR$112.9 billion in 1Q24 and AR$24.6 billion in 4Q24. The sequential decline was mainly explained by: i) a 46.6%, or AR$ 43.3 billion, decline in market related Net Financial Income due to lower prices of government securities, ii) a 118.0%, or AR$ 16.7 billion, increase in loan loss provisions driven by strong growth in retail lending which entails higher provisioning and a lower comparison base in 4Q24, and iii) a 5.2%, or AR$ 645.1 million, decline in brokerage fees amid increased market volatility. These effects were partially offset by: i) a 17.2%, or AR$ 18.5 billion, increase in client net financial income, ii) a 12.3%, or AR$ 17.4 billion, decline in operating expenses, iii) a 3.4%, or AR$ 1.2 billion, increase in fee income from our banking business as fees repriced above inflation, and iv) a 2.8%, or AR$ 208.0 billion, increase in revenues from the asset management business. Revenues (net financial income + net fee income – turnover tax) totaled AR$206.9 billion in 1Q25, compared to AR$477.2 billion in 1Q24 and AR$232.9 billion in 4Q24. Net Financial Income totaled AR$175.4 billion in 1Q25, down 62.4% YoY and 12.4% QoQ. The QoQ decline was mainly driven by a 46.6%, or AR$43.3 billion, decrease in the Market-related Net Financial Income, reflecting lower yields on government securities amid uncertainty prior to the agreement reached with the IMF in April. In contrast, the Client Net Financial Income rose 17.2%, or AR$18.5 billion, supported by strong spreads on increased loan volumes. Adjusted Net Financial Income (Net Financial Income + Result from exposure to inflation) totaled AR$133.6 billion in 1Q25, decreasing 55.6% YoY, and 17.7% QoQ. Net Interest Margin (NIM) declined to 19.2% in 1Q25 from 24.9% in 4Q24. Margins from client lending remained resilient, with loan portfolio NIM improving to 21.2% from 20.7% in 4Q24, reflecting wider spreads, underscoring the strength of our core banking operations. In contrast, Investment Portfolio NIM dropped significantly to 17.7% from 33.6%, reflecting a sharp correction in treasury bond yields. The YoY comparison reflects the normalization of extraordinary factors that drove the unusually high 61.8% NIM in 1Q24, including gains from the sale of government securities previously recorded at amortized cost, high AR$ spreads on government securities and loans, and lower funding costs following the removal of deposit rate floors that quarter. The total NPL ratio stood at a healthy 2.0% in 1Q25, up from 1.1% in 1Q24 and 1.3% in 4Q24. This increase reflects a normalization in credit quality following robust YoY growth of 196% and 58% (in real terms) in retail and commercial loan portfolios, respectively. The stronger expansion in the retail segment shifted the loan mix toward retail exposure, which typically carries higher NPL ratios than corporate lending. Despite this, the current NPL ratio remains below historical averages and is in line with the industry benchmark of 2% as of March 2025. Moreover, delinquency remains within expected levels embedded in product pricing, while we continue to refine our origination and collection strategies to preserve portfolio quality Loan loss provisions (LLPs) totaled AR$31.8 billion in 1Q25, up 155.9% YoY and 80.9% QoQ. These increases reflect loan growth and a shift in the loan portfolio mix towards retail loans which entail higher provisioning than commercial loans. Retail loan volumes increased 12.8% QoQ and 196.3% YoY in real terms. The QoQ performance also reflects one-time provision releases recorded in the previous quarter, following an update to the macroeconomic variables in the expected credit loss model that incorporated a more favorable macroeconomic outlook. Net loan loss provisions, equivalent to LLPs net of recovered charged-off loans and reversed allowances, amounted to AR$30.9 billion in 1Q25, compared to AR$13.1 billion in 1Q24 and AR$14.2 billion in 4Q24. The Coverage Ratio stood at 152.7% as of March 31, 2025, compared to 263.7% as of March 31, 2024, and 169.2% as of December 31, 2024. Efficiency ratio was 59.6% in 1Q25, compared with 33.8% in 1Q24 and 63.8% in 4Q24. The QoQ improvement was explained by a 12.3% decline in personnel and administrative expenses, along with D&A, partially offset by a 6.1% decrease in Revenues. Excluding severance payments and early retirement charges in 1Q25 related to the Company's efficiency program, the efficiency ratio would have been 57.6%. Loans to Deposits Ratio was 66.5% as of March 31, 2025, compared to 43.6% as of March 31, 2024, and 69.7% as of December 31, 2024. Total Deposits amounted to AR$3,709.7 billion, increasing 109.0% YoY and 16.9% QoQ in nominal terms. Total private sector deposits reached AR$ 3,576.6 billion, increasing 112.4% YoY and 18.1% QoQ in nominal terms, outpacing the industry, which reported growth of 95.4% YoY and 5.6% QoQ. In real terms, total deposits increased 34.0% YoY and 7.7% QoQ, while private sector deposits increased 36.2% YoY and 8.8% QoQ in real terms, above industry trends. Average deposits amounted to AR$ 3,245.4 billion, increasing 19.8% YoY and 9.0% QoQ in real terms. AR$ deposits totaled AR$2,823.3 billion, increasing 86.6% YoY and 21.6% QoQ in nominal terms, compared to industry growth of 88.4% YoY and 9.2% QoQ. In real terms, AR$ deposits increased 19.7% YoY and 12.0% QoQ. Foreign currency deposits amounted to US$825.4 million, increasing 170.1% YoY and 0.1% QoQ, outperforming industry FX deposits which increased 73.6% YoY and declined 6.7% QoQ. Total Assets increased 34.0% YoY and 9.1% QoQ, reaching AR$5,365.3 billion as of March 31, 2025. Total average Assets increased 27.1% YoY and 5.9% QoQ. The QoQ performance was primarily driven by a 30.2%, or AR$321.1 billion, increase in the balance of government securities, reflecting quarter-end assets and liability management. Net Loans increased by 1.9%, or AR$44.3 billion, during the same period. Average balances reflect a more moderate QoQ increase of 13.7%, or AR$154.3 billion, in government securities, while average loans increased 14.0%, AR$291.6 billion, reflecting sustained lending activity throughout the quarter. Since 1Q24, the Company has steadily diversified its asset portfolio, sharply increasing its exposure to private-sector loans while reducing its investment portfolio. Although loan participation declined slightly at the end of 1Q25 due to a temporary increase in government securities, the overall trend reflects a strategic shift towards a more loan-centric balance sheet, expected to continue through 2025. The leverage ratio (Assets to Shareholders' Equity) increased 140 bps YoY to 6.0x, from 4.6x as of March 31, 2024, and 50 bps QoQ, from 5.5x as of December 31, 2024. Despite the increase, leverage remains significantly below the 8x level reached in 2018, underscoring the ample capacity to support future growth. Loans increased 218.4% YoY, and 11.5% QoQ in nominal terms, reaching AR$2,466.6 billion as of March 31, 2025. In real terms, gross loans increased 104.2% YoY and 2.7% QoQ. The YoY performance reflects the Company's strategic decision since 1Q24 to accelerate loan origination across both commercial and retail segments, anticipating higher credit demand driven by declining inflation and lower market interest rates. The QoQ increase was particularly supported by strong retail loan demand, particularly in personal loans, car loans and credit cards. Common Equity Tier 1 Ratio (CET1) was 15.3% as of March 31, 2025, decreasing 990 bps YoY and 80 bps QoQ. The QoQ decrease in CET1 reflects a non-recurring impact of 1,400 bps from the implementation of the new credit and operational risk requirements, effective January and March 2025 respectively. Moreover, the CET1 ratio reflects the expansion in Risk-weighted assets driven by loan growth, as well as higher deductions on deferred tax assets. These were partially offset by organic capital creation together with inflation adjustment of capital.
