In This Article:
Release Date: March 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Grupo Supervielle SA (NYSE:SUPV) achieved significant loan book expansion, with a 27% quarter-over-quarter increase and a 1107% year-on-year growth, surpassing industry growth rates.
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The company's digital transformation strategy, initiated in 2020, has been successfully completed, enhancing operational agility and positioning Grupo Supervielle SA (NYSE:SUPV) as a tech-driven institution.
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Retail loans, which offer higher margins, increased to 48% of the total portfolio, up from 40% a year ago, indicating a strategic shift towards more profitable segments.
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Grupo Supervielle SA (NYSE:SUPV) maintained a strong capital position with a CET1 ratio of 16.1%, supporting continued growth and strategic initiatives.
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The company's digital brokerage platform, IOL, saw a 57% increase in accounts and a 70% rise in average monthly active users, reinforcing its leadership in Argentina's digital brokerage market.
Negative Points
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The non-performing loan ratio increased slightly to 1.3%, although it remains within historically low levels.
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Net interest margins are expected to adjust downwards to 18-20% in 2025 due to lower inflation and increasing leverage, potentially impacting profitability.
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The competitive environment is intensifying, with expectations of declining spreads as interest rates decrease.
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Grupo Supervielle SA (NYSE:SUPV) anticipates a gradual increase in the NPL ratio to 2-2.2% in 2025, reflecting increased lending activity and a more balanced loan mix.
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Operating expenses are expected to grow below inflation, which may challenge the company in managing costs effectively while supporting loan growth of 60% in real terms.
Q & A Highlights
Q: Could you explain the capital consumption due to loan growth and the deferred tax assets' impact on your capital? Also, what is your target tier one capital ratio? A: (Mariano, CFO) The capital consumption is partly due to recognizing deferred tax assets related to tax loss carryforwards from a previous merger. These assets are deducted from the capital position, impacting the tier one ratio. We are comfortable operating at a 12-13% tier one ratio, and if growth continues, we might consider adding capital in 2026.
Q: How do you see the competitive environment and spreads evolving in 2025? A: (Mariano, CFO) As inflation decreases, interest rates will likely follow, putting pressure on spreads. However, we are shifting our portfolio towards higher-margin retail loans, which should help maintain spreads. We expect corporate spreads to remain stable but at a lower interest rate level.