Grupo Supervielle (SUPV) Q3 2024 earnings summary

Executive summary

• Loan book grew 15% sequentially and 60% YTD in real terms, with retail loans up 44% QoQ and car loans doubling; market share increased 60 bps YTD.

• Net income for 3Q24 was AR$8.9B, down QoQ and YoY, but 9M24 net income rose 54% YoY to AR$89.8B; ROE for 3Q24 was 5% and 16% for 9M24, with FY24 ROE guidance maintained at 15%.

• US$ deposits reached record highs, up 90% QoQ and 170% YTD, driven by tax amnesty; total deposits grew in the high teens.

• NPL ratio remained stable at 0.8%, with coverage ratio at 282% and asset quality at historic lows.

• CEO transition completed with Gustavo Manriquez appointed effective October 1, 2024.

Financial highlights

• Net financial income declined 29% QoQ due to lower inflation and yields; net fee income rose 25–28% QoQ, with brokerage and asset management contributing significantly.

• Efficiency ratio increased to 64.3% in 3Q24, mainly due to lower financial margin and severance charges.

• Operating expenses rose 2% QoQ, but would have declined nearly 5% excluding severance.

• Loan loss provisions contracted 22%, reflecting healthy asset quality; cost of risk at 2.7%.

• Total assets reached AR$3.99 trillion (+6.7% QoQ); loans to deposits ratio at 58.3%.

Outlook and guidance

• FY24 ROE target maintained at 15%; management expects profitability rebound in 4Q24.

• Peso loans expected to grow 70–80% in real terms for 2024; NPL ratio to remain below 1%.

• CET1 ratio projected between 16–18% at year-end.

• 2025 forecasts: GDP growth of 4–5%, inflation at 30%, and continued loan and deposit growth.

• Macro assumptions: 2024 inflation at 120%, FX at 1,021, GDP at -3.6%.