3Q24 Net Income at AR$8.9 billion with ROAE at
4.9%
9M24 Net Income reached AR$89.8 billion and
ROAE at 16.4%
Confirm 15% ROE Guidance for FY2024
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-month period ended
September 30, 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 third quarter 2024 results, Patricio
Supervielle, Grupo Supervielle’s Chairman & CEO, noted:
“Growth momentum continued into 3Q24, with our loan book expanding
15% sequentially and 60% year-to-date in real terms, underscoring
solid credit demand. As anticipated, Net Interest Margin adjusted
to a normalized 25%, aligned with current market conditions. Fee
income remained strong - up 28% sequentially - driven by banking,
asset management, and online brokerage operations, further
supported by an 11% increase in insurance income. Moreover, our
disciplined risk management approach further enhanced our solid
performance. Combined, these factors resulted in a cumulative ROE
of 16% for the first nine months of 2024 and 5% in the quarter.
While profitability bottomed out in 3Q24, we are seeing a rebound
in the fourth quarter and are on track to deliver our full-year ROE
guidance of 15%.
Since initiating our early-mover strategy for targeted credit
expansion in March 2024, we’ve captured a significant market share,
with our loan portfolio increasing 60-basis points year-to-date.
Despite slower growth this quarter, we maintained gains across all
key products, including corporate loans, personal loans, credit
cards, and car loans. Additionally, we retained our position as the
second-largest bank in car loan origination and saw meaningful
contributions from retail loans, including personal loans and auto
loans, bolstering NIM. In deposits, market share increased by 60
bps year-to-date, including an 80-bps growth in U.S.
dollar-denominated deposits.
In terms of asset quality, the NPL ratio remained stable at a
historic low of 0.8% amid ongoing loan growth. This quarter, cost
of risk decreased to 2.4%, underscoring the effectiveness of our
focus on middle-market and corporate segments, payroll, and
asset-backed loans, positioning us well for growth in a gradually
improving macro environment.
IOL continues to reinforce its position as the leading online
brokerage platform in the country and contributing 21% of our total
fee income this quarter. Active clients reached a record 580,000
marking a 14% increase with transaction volumes up 22%
sequentially, reflecting the strong appeal of our integrated
digital services. Additionally, IOL is complementing Banco
Supervielle playing a key role in channeling corporate debt
issuances to its retail customer base. This quarter, assets under
management reached the US$ 1.2 billion mark, and we are proud to
have recently opened IOL’s 1.5 millionth client account – a
significant milestone in our growth trajectory.
I am also pleased to welcome Gustavo Manriquez as CEO of Banco
Supervielle, effective October 1. With Gustavo’s over a decade of
experience leading one of the largest banks in Argentina together
with deep international experience, he brings invaluable expertise
as we enter a new era for Argentina. His guidance will drive the
bank through its next growth phase, realizing the full potential of
the Supervielle ecosystem, unlocking the value of the franchise and
further expanding our contribution to the country’s economic
progress and transformation.
Wrapping up, 2024 represents a turning point for Argentina’s
financial system, with the industry experiencing real-term loan
growth since June for the first time in 7 years, driven by easing
inflation and lower interest rates. Despite this progress, credit
penetration remains low at under 6% of GDP, highlighting
significant potential for future growth. Looking ahead to 2025, we
expect the government’s continued efforts to reduce inflation,
sustain fiscal surpluses, and advance deregulation across multiple
sectors to stimulate broader economic activity and further drive
credit demand across the private sector.
In this context, we see attractive opportunities to deepen our
market presence by leveraging our diverse product offerings and
digital solutions to enhance client engagement and drive growth,
positioning Supervielle as a key player in the country’s recovery.
This strategy is further strengthened by our foothold in
export-oriented value chains and enabled by our solid capital
base,” concluded Mr. Supervielle.
Third quarter 2024 Highlights
PROFITABILITY
Attributable Net Income of AR$8.9 billion in 3Q24,
compared to net gains of AR$29.3 billion in 3Q23 and AR$19.2
billion in 2Q24.
Net Income was AR$89.8 billion in 9M24, compared to AR$58.3
billion in the same period of 2023.
ROAE was 4.9% in 3Q24 compared to 18.5% in 3Q23 and 10.4%
in 2Q24. The Company reconfirms the 15% ROAE target ROAE for FY24.
9M24 ROAE reached 16.4% compared to 12.9% in 9M23
ROAA was 1.0% in 3Q24 compared to 2.9% in 3Q23 and 2.3%
in 2Q24. 9M24 ROAA was 3.4% compared to 1.9% in 9M23.
Profit before income tax of AR$10.7 billion in 3Q24
compared to AR$47.0 billion in 3Q23 and AR$34.6 billion in 2Q24.
Profit before income tax reached AR$141.6 billion in 9M24
increasing from AR$93.3 billion in 9M23.
QoQ performance is mainly explained by a 29.4%, or AR$67.0
billion, decrease in Net Financial income driven by the decline in
inflation reducing yields on government securities and loans,
partially offset by a reduction in the cost of funds. The asset
portfolio continues to shift toward a larger share of
private-sector loans, reducing the Company’s investment portfolio.
A 1.8%, or AR$ 2.2 billion, increase in personnel &
administrative expenses and D&A also impacted QoQ performance.
Excluding severance payments and early retirement charges related
to the Company’s efficiency plan, administrative expenses and
D&A would have decreased 4.1% sequentially. This was partially
offset by: i) a 31.2%, or AR$20.7 billion, decrease in the loss
from exposure to inflation given the deceleration in inflation to
12% in 3Q24 from 18% in 2Q24; ii) a 25.0%, or AR$9.7 billion,
increase in Net Fee Income, driven by the repricing of bank fees in
a declining inflationary environment, including improved brokerage
and asset management fee revenues, which together represented 33%
of total fee income; iii) a 34.6%, or AR$11.8 billion, decrease in
other expenses as the previous quarter recorded higher turnover tax
and higher provisions to execute several strategic initiatives; and
iv) a 22.4%, or AR$3.1 billion, decrease in LLPs reflecting solid
credit quality with the NPL ratio remaining historic lows.
Revenues (net financial income + net fee income – turnover
tax) amounted to AR$196.2 billion in 3Q24, compared to AR$254.5
billion in 3Q23 and AR$247.2 billion in 2Q24. 9M24 revenues
increased 30.7%, or AR$200.4 billion, compared to 9M23.
Net Financial Income reached AR$160,988.1 billion in
3Q24, reflecting decreases of 31.6% YoY and 29.4% QoQ. Lower
inflation reduced the impact of inflation-linked instruments in the
Company’s investment and loan portfolio, while a stable rate
environment and Central Bank adjustments lowered Peso assets’
yields, normalizing monetary policy and reducing the high spreads
from previous quarters.
9M24 Net Financial Income was AR$ 786.6 billion, up 30.0% from
AR$ 604.9 billion in 9M23. Adjusted Net Financial Income was AR$
533.7 billion, up 10.0% from AR$ 485.2 billion in 9M23.
Net Interest Margin (NIM) stood at 24.8%, amid both lower
inflation and monetary policy rate, which reduced yields on assets,
funding costs and spreads. This compares to NIM of 29.2% in 3Q23
and 36.3% in 2Q24.
The total NPL ratio was 0.8% in 3Q24, improving by 90
basis points YoY from 1.7% and remaining flat QoQ. The QoQ and YoY
performances reflect loan portfolio growth and stable credit
risk.
Loan loss provisions (LLPs) totaled AR$10.3 billion in
3Q24, decreasing 23.4% YoY and 21.5% QoQ. Net loan loss
provisions, equivalent to loan loss provisions net of recovered
charged-off loans and reversed allowances, amounted to AR$10.6
billion in 3Q24 compared to AR$13.9 billion in 3Q23 and AR$13.6
billion in 2Q24. The Coverage Ratio was 281.7% as of
September 30, 2024, compared to 182.8% as of September 30, 2023,
and 302.9% as of June 30, 2024.
Efficiency ratio was 64.3% in 3Q24, increasing from 51.7%
in 3Q23 and 50.9% in 2Q24. Excluding severance payments and early
retirement charges related to the Company’s efficiency program, the
efficiency ratio would have been 60.5%. 9M24 Efficiency ratio was
46.1%, improving from 60.9% in 9M23.
Loans to Deposits Ratio was 58.3% as of September 30,
2024, compared to 39.6% as of September 30, 2023, and 59.5% as of
June 30, 2024.
Total Deposits amounted to AR$2,751.5 billion and
increased 183.9% YoY and 31.3% QoQ in nominal terms compared
to industry growth of 181.8% YoY and 26.6% QoQ. In real
terms, total deposits decreased 8.1% YoY but increased 17.1%
QoQ. Total private sector deposits decreased 0.6% YoY but increased
18.1% QoQ in real terms following the industry trend.
Foreign currency deposits (measured in US$) amounted to
US$ 801.1 million, increasing 201.5% YoY and 90.2% QoQ, while
industry FX deposits increased 110.3% YoY and 75.9% QoQ.
Total Assets increased 6.7% QoQ and 0.2% YoY, reaching
AR$3,997.6 billion as of September 30, 2024.
The leverage ratio (Assets to shareholders’ equity)
decreased 80 bps YoY to 5.4x from 6.2x as of September 30, 2023,
and increased 30 bps QoQ from 5.1x as of June 30, 2024. This
remains significantly below the 8x reached in 2018, underscoring
the substantial room for growth.
Loans grew 318.6% YoY, 222.3% year-to-date, and 28.6% QoQ
in nominal terms, reaching AR$1,605.4 billion. In real terms, gross
loans increased 35.5% YoY, 59.9% year-to-date, and 14.7% QoQ, while
industry loans rose 13.6% YoY, 28.8% year-to-date, and 26.2% QoQ.
Year-to-date, the total loan portfolio gained 60 bps in market
share (based on the monthly average daily balance of system
loans).
Common Equity Tier 1 Ratio (CET1) as of September 30,
2024, was 19.2% increasing 240 bps YoY and decreasing 210 bps when
compared to the reported CET1 as of June 30, 2024.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241125179087/en/
Grupo Supervielle Investor Relations
ir-gruposupervielle@gruposupervielle.com.ar
Grupo Supervielle (NYSE:SUPV)
Historical Stock Chart
From Oct 2024 to Nov 2024
Grupo Supervielle (NYSE:SUPV)
Historical Stock Chart
From Nov 2023 to Nov 2024
