Grupo Supervielle Reports 3Q23 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 and nine-months period ended September 30, 2023.

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 third quarter 2023 results, Patricio Supervielle, Grupo Supervielle’s Chairman & CEO, noted: “We are pleased to report another quarter with improved profitability and ROAE reaching 18.5% in real terms. We accomplished this as we continue executing our strategic plan while navigating an increasingly complex macroeconomic and political environment.

NIM, at 29%, remained high in the quarter, supported principally by a 17% sequential increase in net financial income driven by higher volumes. This trend continued into October underpinned by our solid asset and liability management capabilities. Notably, fee income increased 14% sequentially in real terms driven by a solid performance across our businesses.

The NPL ratio improved further, reaching a historic low of 1.7%, reflecting a mix-shift in the loan book as we significantly reduced our exposure to consumer loans and tightened overall credit scoring standards over the past quarters. We maintained our focus on loans to payroll, and middle-market customers prioritizing asset quality in the current macro environment.

On an accumulated basis, we delivered solid results, with ROE in real terms improving to 13% from negative 5% in the year-ago period. Higher profitability was mainly driven by a 16% increase in Net financial income while loan loss provisions contracted 32%, reflecting a healthier loan mix. Our successful initiatives, aimed at driving higher operating leverage, contributed to an 8% decline in personnel and administrative expenses. In turn, this contributed to a sustained improvement in the efficiency ratio to 61% from 76% in 9M22, while we also maintained our focus on further enhancing the customer experience.