Grupo Supervielle (SUPV) Q1 2025 earnings summary

Executive summary

• Net income for 1Q25 was AR$7.9 billion, with ROAE at 3.5%, reflecting a transitional macro environment and normalization after prior-year gains on government securities.

• Loan book grew 3% sequentially and 104% YoY, with retail loans now 52% of total, up from 36% a year ago.

• Deposits increased 8% QoQ, with AR$ deposits up 12%, US$ deposits at record levels, and market share up 30 bps to 3%.

• Operating expenses declined 12% QoQ and 17% YoY, improving efficiency ratio to 60% from 64% in 4Q24.

• Argentina's macro environment is stabilizing, with IMF agreement and FX regime changes restoring confidence.

Financial highlights

• Client net financial income rose 17% QoQ, but total net financial income declined 12% QoQ and 62.4% YoY due to lower market-related income.

• NIM dropped to 19.2% from 24.9% in 4Q24; efficiency ratio improved to 59.6% from 63.8% in 4Q24.

• Net service fee income grew 29% YoY; insurance income up 47% YoY.

• Loans to deposits ratio at 66.5%, with leverage (assets to equity) at 6.0x.

• Total assets reached AR$5.37 trillion, and total deposits AR$3.71 trillion.

Outlook and guidance

• Loans expected to grow 50%-60% in real terms in 2025, with retail loans to remain above 50% of the portfolio.

• NPL ratio guidance raised to 2.2%-2.5% as retail lending increases; net cost of risk to 4%-4.5%.

• NIM expected to normalize in the 18%-20% range as inflation and rates ease.

• Fee income projected to grow at least 10% in real terms in 2025; operating expenses to continue declining below inflation.

• ROE/ROAE expected to improve to 12%-15% for the year as leverage and loan growth increase.