Grupo Supervielle Reports 4Q24 and FY24 Results

Rhea-AI Summary

Grupo Supervielle (NYSE: SUPV) reported its Q4 and FY 2024 financial results, achieving a net income of AR$28.2 billion in Q4 with 13.8% ROAE, and AR$125.2 billion for FY24 with 15.7% ROAE, meeting their full-year guidance target.

Key Q4 highlights include:

• Loan portfolio grew 28% quarter-over-quarter and 106% year-over-year
• Retail lending reached 48% of total loans, up from 44% in Q3
• Deposits increased 7% sequentially, with U.S. dollar deposits surging 178% YoY
• Non-performing loan ratio at 1.3%
• CET1 ratio at 16.1%

The company's digital transformation through Banco Supervielle and IOL invertironline's leadership in retail digital brokerage has positioned them for growth. IOL manages US$1.7 billion in AUC across 1.6M customer accounts, while maintaining strong asset quality and expanding their market presence in key sectors.

Positive

• Met FY24 ROAE guidance target of 15% with actual 15.7%
• Loan portfolio outperformed industry with 106% YoY growth vs 54%
• U.S. dollar deposits surged 178% YoY
• Strong asset quality maintained with NPL ratio at 1.3%
• Robust capital position with CET1 ratio at 16.1%
• Retail lending increased to 48% of total loans from 40% in Q4 2023

Negative

• Q4 Net Income declined YoY from AR$48.9B to AR$28.2B
• ROAE decreased from 26.9% in Q4 2023 to 13.8% in Q4 2024
• Efficiency ratio increased to 64.0% from 43.4% in Q4 2023
• CET1 ratio declined 490 bps YoY and 310 bps QoQ
• Net Financial Income declined 56.2% YoY in Q4

Insights

Financial Analyst

Grupo Supervielle delivered solid FY24 performance with AR$125.2 billion in net income and 15.7% ROAE, meeting their 15% annual guidance despite a challenging macroeconomic environment. The bank demonstrated impressive loan growth of 106% YoY in real terms, significantly outpacing the industry's 54%, resulting in a 0.9% market share gain.

Particularly noteworthy is the strategic shift toward higher-margin retail lending, now representing 48% of the portfolio versus 40% a year ago. This transition, coupled with deposit growth and strong USD deposit inflows (up 178% YoY), positions the bank favorably for improved net interest margins.

While Q4 showed sequential improvement with net income rising to AR$28.2 billion from AR$9.6 billion in Q3, the 13.8% ROAE represents a decline from 26.9% in Q4 2023. Asset quality remains solid with NPLs at 1.3%, though up slightly from historical lows.

The capital position remains robust with a 16.1% CET1 ratio, providing ample capacity for continued expansion. The efficiency ratio improved to 49.3% for FY24 from 54.7% in FY23, demonstrating effective cost management despite ongoing investments in digital transformation.

Overall, Supervielle has successfully pivoted toward growth while maintaining solid fundamentals, setting the stage for continued momentum as Argentina's financial landscape evolves.

4Q24 Net Income at AR$28.2 billion with ROAE at 13.8%

FY24 Net Income reached AR$125.2 billion and ROAE at 15.7%

Achieved Full-Year ROAE Guidance of 15% for 2024

BUENOS AIRES, Argentina--(BUSINESS WIRE)-- 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 twelve-month period ended December 31, 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 fourth quarter 2024 results, Patricio Supervielle, Grupo Supervielle’s Chairman & CEO, noted: "2024 was a transformative year for both Supervielle and Argentina’s financial system, marking a pivotal shift in our strategic direction. As we realigned with our core purpose of financing growth, we strengthened our foundation for sustained future expansion. In a rapidly and positively evolving macroeconomic landscape, we took decisive actions to expand our loan portfolio, fortify our deposit base, and uphold strong asset quality, delivering an annual ROE of 15.7%, in line with our full-year guidance.

During the fourth quarter, we maintained strong business momentum. Our loan portfolio grew 28% quarter-over-quarter and 106% year-over-year compared with 54% industry growth, gaining 90 bps in market share. Retail lending was a key driver, accounting for 48% of total loans, up from 44% in 3Q24 and 40% in 4Q23. Deposits also posted solid growth, increasing 7% sequentially, while U.S. dollar deposits surged 178% YoY, reaching record levels and gaining 80 bps in share. At the same time, asset quality remained solid, with the non-performing loan ratio at 1.3%, slightly above historical lows but still at low levels. A CET1 ratio of 16.1% positions us well for continued growth.

Beyond financial performance, 2024 was about building on the strong foundation we laid for long-term, sustainable growth. Over the past three years, Banco Supervielle successfully executed a major digital transformation, enhancing agility and technological capabilities. This has positioned us to act swiftly and capture opportunities in 2024, while also preparing us for further scaling. IOL invertironline (IOL) solidified its leadership in Argentina’s retail digital brokerage space, increasing its contribution to our fee income and profitability. This was also a year of leadership and organizational readiness. With Gustavo “Paco” Manriquez redefining Banco Supervielle’s strategy and Diego Pizzulli driving IOL’s continued expansion, we are well-positioned to accelerate growth in 2025.

Looking ahead, consolidating profitability, driving sustainable growth and further strengthening our culture are the key pillars that define our vision.

At Banco Supervielle, 2025 will be a year of acceleration supported by compelling opportunities to deepen our market positioning and scale key business segments. Under Paco’s leadership we will continue to develop differentiated value propositions that enhance our competitiveness against both fintechs and traditional banks. While we already have a strong emphasis on payroll accounts and SMEs, we will expand in high-potential sectors like oil & gas and mining and aim to become the primary bank of our clients. As pent-up demand fuels credit expansion, we are also shifting our portfolio mix toward higher-margin retail lending, continuing to expand fee-based income, optimizing capital efficiency and streamlining costs and headcount. This approach, combined with industry-leading Net Interest Margins and a growing Return on Equity, positions the bank well to drive sustainable growth and long-term value creation.

As the leading retail online broker in Argentina, with 1.6 M customer accounts and US$1.7 billion in AUC, IOL is in the strongest position to capture the nascent and growing opportunity in the country’s financial markets through a wide range of financial services for the retail, wealth and SMBs segments. We will continue to reinforce our competitive advantages, enhancing our investment offerings, expanding our wealth management and capital markets services, and leveraging technological innovations to capture increasing retail investor demand.

We are also ramping up cross-selling, offering banking and fintech solutions to IOL clients – 97% of whom don’t yet bank with us – unlocking a significant growth opportunity.

With a solid capital position and a focused strategy, Supervielle is well-positioned to play a pivotal role in Argentina’s recovery. We see strong growth potential at Banco Supervielle and IOL, driven by the country’s significantly low credit and financial investment penetration levels. Leveraging these opportunities, we remain committed to creating long-term value for our shareholders, customers, and the communities we serve," concluded Mr. Supervielle.

Attributable Net Income of AR$28.2 billion in 4Q24, compared to net gains of AR$48.9 billion in 4Q23 and AR$9.6 billion in 3Q24.

Net Income was AR$125.2 billion in FY24, compared to AR$111.9 billion in FY23.

ROAE was 13.8% in 4Q24, compared to 26.9% in 4Q23 and 4.9% in 3Q24. FY24 ROAE reached 15.7%, in line with the 15% ROAE target for FY24, compared to 16.7% ROAE in FY23.

ROAA was 2.6% in 4Q24 compared to 5.3% in 4Q23 and 1.0% in 3Q24. FY24 ROAA improved to 3.1% from 2.5% in FY23.

Profit before income tax totaled AR$22.6 billion in 4Q24 compared to AR$88.0 billion in 4Q23 and AR$11.6 billion in 3Q24.

QoQ performance was mainly driven by: i) a 30.1% (AR$14.8 billion) reduction in losses from inflation exposure, as inflation slowed to 8% in 4Q24 from 12% in 3Q24; ii) a 5.7% (AR$10.0 billion) increase in Net Financial Income, reflecting higher client interest income from loan portfolio expansion and lower funding costs amid declining interest rates following the decrease in inflation; and iii) a 7.2% (AR$5.2 billion) decrease in Personnel Expenses, which would have declined 12.3% sequentially when excluding severance payments and early retirement charges related to the Company’s efficiency plan. These gains were partially offset by: i) a 14.7% (AR$1.7 billion) increase in Net Loan Loss Provisions, aligned with 27.5% loan growth while maintaining solid credit quality and a low NPL ratio; ii) a 12.4% (AR$6.9 billion) increase in Administrative Expenses and D&A, mainly due to advertising and marketing costs, among other factors; iii) a 37.2% (AR$5.3 billion) increase in Turnover Tax, reflecting higher taxable income from loan growth; and iv) a 8.0%, or AR$809.4 billion, increase in Other Operating Expenses.

On a full-year basis, Profit before income tax reached AR$175.6 billion compared to AR$188.7 billion in FY23.

Revenues (net financial income + net fee income – turnover tax) totaled AR$214.0 billion in 4Q24, compared to AR$430.6 billion in 4Q23 and AR$210.1 billion in 3Q24. FY24 revenues remained stable at AR$1,129.3 billion compared to AR$1,134.8 billion in FY23.

Net Financial Income totaled AR$183.9 billion in 4Q24, representing a 56.2% YoY decline but a 5.7% QoQ increase. The QoQ improvement was primarily driven by an 18.6% increase (AR$29.8 billion) in client interest income, supported by loan portfolio expansion, and resilient AR$ loan rates, which remained stable despite the declining rate environment. Additionally, interest expenses decreased by 7.1% (AR$11.5 billion), benefiting from lower funding costs. These gains were partially offset by a 17.9% drop (AR$31.4 billion) in market-related income, reflecting lower yields on a reduced investment portfolio, as the asset mix continued shifting toward private-sector loans.

FY24 Net Financial Income was AR$ 1,033.6 billion, decreasing 3.7% from AR$1,072.9 billion in FY23. Adjusted Net Financial Income was AR$726.1 billion, down 12.5% from AR$830.3 billion in FY23.

Net Interest Margin (NIM) stood at 24.8%, amid lower inflation and a declining policy rate, that reduced funding costs while asset yields declined but a slower pace. This compares to NIM of 24.8% in 3Q24.

The total NPL ratio was 1.3% in 4Q24, increasing 10 bps YoY from 1.2% in 4Q23 and 50 bps QoQ from 0.8% in 3Q24. While the NPL ratio has increased in QoQ and YoY, it remains well below historical levels. As anticipated, the NPL ratio is expected to gradually normalize given high credit demand. The QoQ performance was primarily driven by a fully collateralized delinquent commercial loan representing less than 0.4% of the total loan portfolio.

Loan loss provisions (LLPs) totaled AR$16.2 billion in 4Q24, decreasing 26.3% YoY but increasing 45.7% QoQ. The QoQ increase reflects higher provisioning due to the 27.5% real loan growth in the quarter. This was partially offset by provision releases following an update to the expected loss model, which now incorporates a more favorable macroeconomic outlook.

The Coverage Ratio stood at 169.2% as of December 31, 2024, compared to 262.4% as of December 31, 2023, and 281.7% as of September 30, 2024.

Efficiency ratio stood at 64.0% in 4Q24, compared with 43.4% in 4Q23 and 64.1% in 3Q24. Excluding severance payments and early retirement charges in 4Q24 related to the Company’s efficiency program, these expenses would have decreased 0.8%. For the full year the Efficiency ratio improved to 49.3%, from 54.7% in FY23.

Loans to Deposits Ratio was 69.7% as of December 31, 2024, compared to 32.2% as of December 31, 2023, and 58.3% as of September 30, 2024.

Total Deposits reached AR$3,173.5 billion, increasing 104.9% YoY and 15.3% QoQ in nominal terms. Private sector deposits amounted to AR$3,028.6 billion, increasing 109.2% YoY and 15.6% QoQ in nominal terms compared to industry growth of 116.4% YoY and 16.4% QoQ. In real terms, total deposits decreased 5.9% YoY but increased 6.8% QoQ. Total private sector deposits decreased 3.9% YoY but increased 7.0% QoQ in real terms in line with the industry trend.

Total Assets increased 4.9% QoQ and 1.0% YoY, to AR$4,530.7 billion as of December 31, 2024.

The leverage ratio (Assets to shareholders’ equity) decreased 50 bps YoY to 5.5x from 6.0x as of December 31, 2023, and increased 10 bps QoQ from 5.4x as of September 30, 2024. Current leverage remains significantly lower than the 8x level reached in 2018, underscoring ample capacity for future growth.

Loans increased 343.9% YoY, and 37.7% QoQ in nominal terms, reaching AR$2,211.2 billion as of December 31, 2024. In real terms, loans increased 106.5% YoY and 27.6% QoQ, outpacing industry loans growth of 54.2% and 21.5% respectively, while gross loans increased 103.8% YoY and 27.5% QoQ. The total loan portfolio gained 80 bps in market share YoY, based on the monthly average daily balance of industry loans as of December 2024.

Common Equity Tier 1 Ratio (CET1) stood at 16.1% as of December 31, 2024, decreasing 490 bps YoY and 310 bps QoQ.

ESG

Today, Supervielle published its 2024 Integrated Annual Report, reaffirming its commitment to transparency, sustainability and responsible business practices. The report provides stakeholders with a clear overview of the Company´s ESG activities and progress.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250310426330/en/

Ana Bartesaghi

ana.bartesaghi@supervielle.com.ar

54114324-8158

Source: Grupo Supervielle S.A.

FAQ

What was Grupo Supervielle's (SUPV) net income and ROAE for Q4 2024?

SUPV reported Q4 2024 net income of AR$28.2 billion with a Return on Average Equity (ROAE) of 13.8%.

How much did SUPV's loan portfolio grow in Q4 2024?

The loan portfolio grew 28% quarter-over-quarter and 106% year-over-year, outpacing industry growth of 54%.

What was SUPV's asset quality in Q4 2024?

The non-performing loan ratio was 1.3%, with a coverage ratio of 169.2% as of December 31, 2024.

How did SUPV's deposits perform in Q4 2024?

Total deposits reached AR$3,173.5 billion, increasing 15.3% quarter-over-quarter, with U.S. dollar deposits growing 178% year-over-year.

What was SUPV's efficiency ratio in Q4 2024?

The efficiency ratio was 64.0% in Q4 2024, improving from 64.1% in Q3 2024.