Grupo Supervielle Reports 1Q24 Results

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, 2024.

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 2024 results, Patricio Supervielle, Grupo Supervielle’s Chairman & CEO, noted: “We delivered a robust first quarter, reporting another record high ROAE of nearly 34% in real terms. This was driven by an unusually high Net Interest Margin (NIM) of 62%, sequentially improved efficiencies, and lower loan loss provisions.

While there is still much work to do, the policies implemented over the last five months are resulting in a gradual transition in Argentina. Previously plagued by high inflation levels, deep fiscal deficits, and a limited financial sector, the country is now experiencing declining inflation, a more orderly Central Bank, and a gradual resurgence in loan demand. This shift is expected to contribute to building a more sustainable, robust, and competitive financial system. In this context, we are strategically diversifying our asset portfolio, gradually shifting towards a larger share of private-sector loans and reducing our portfolio of large holdings of high-margin Central Bank Securities and Government Bonds. As this transition unfolds, we anticipate a gradual adjustment from our exceptionally high NIM levels experienced in recent quarters until loan demand reaches sufficient strength.

Importantly, we regained market share in loans this quarter. Our total loan book expanded by 2.6% sequentially in real terms, gaining 40 bps in market share as the macroeconomic and political environment began to normalize and confidence returned. Corporate loans saw a 60 bp share increase, while within retail loans, car loans market share expanded by 40 bps. More recently, Supervielle became the first private bank in the country to launch new 30-year mortgage loans, which were unavailable except during a short period between 2017 and 2018.