Grupo Supervielle (SUPV) Q2 2024 earnings summary

Executive summary

• Loan portfolio grew 36% QoQ and 13% YoY in real terms, outpacing the industry and driving market share gains, with a record low NPL ratio of 0.8% and coverage above 300%.

• Digital adoption increased, with 65% of customers using digital channels and 56% of transactions via the app, supporting cost efficiencies.

• Corporate and middle market loan book grew 42% sequentially, focusing on export-oriented value chains and capital market transactions.

• IOL, the online brokerage, contributed 19% of fee income, with active customers doubling YoY and AUM surpassing $1 billion.

• Asset management market share rose to 2.5%, and NPS improved across all segments.

Financial highlights

• 2Q24 net income was AR$17.1B, with 1H24 net income at AR$72.2B and ROE/ROAE at 22% for 1H24 and 10.4% for 2Q24.

• Net financial income increased 13% YoY but declined 42.7% QoQ; net fee income fell YoY but rose QoQ.

• Costs declined 9% YoY, and efficiency ratio improved to just below 51% from almost 63% a year ago.

• Loan to deposit ratio rose to 59.5% in 2Q24, up from 32% at year-end 2023.

• CET1 ratio ended the quarter at 21.3%, down sequentially due to strong loan growth and capital returns.

Outlook and guidance

• Peso loan growth expected to exceed 40% in real terms for 2024, with retail loans regaining share.

• Peso and US$ deposits projected to grow above inflation, with fee income to reprice in line with inflation.

• NPL ratio expected to normalize upward as credit demand rises, with net cost of risk stable at 2023 levels.

• ROE/ROAE guidance maintained at 15% for 2024, with expectations to reach 20% in the medium term.

• CET1 ratio expected to close the year between 17%-20%.