Profitability improved to a loss of AR$60 M in
3Q21 from a loss of AR$348 M in 2Q21 reflecting lower LLPs and
operating expenses, although Central Bank regulations and soft loan
demand continue to weigh on NIM
Solid capital base with Tier 1 ratio at
14.1%
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 periods ended
September 30, 2021.
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. According to Central
Bank regulation until December 31, 2020, the Other Comprehensive
Income also reflected the result from the changes in the purchasing
power of the currency results on securities classified as available
for sale. Through communication "A" 7211, effective January 1,
2021, the Central Bank established that the monetary result of
items measured at fair value with changes in Other Comprehensive
Income should be recognized in profit or loss under the line item
"Result from exposure to changes in the purchasing power.” As this
change in the accounting policy was applied retrospectively to all
comparative figures, figures for all quarters of 2020 have been
restated applying this new rule. This report also includes
Managerial figures which exclude the IAS29 adjustment for 3Q21,
2Q21, 1Q21, 4Q20 and 3Q20.
Management Commentary
Commenting on third quarter 2021 results, Patricio
Supervielle, Grupo Supervielle's Chairman & CEO, noted:
“While we have seen a recent rebound in economic activity as
compared to the sharp contraction experienced in 2020 amid the
pandemic, we continue to operate in a market dominated by high
inflation, negative real interest rates and industry loans at
historical lows and growing below inflation. Results for the
quarter improved sequentially benefitting from: i) our strong
underwriting and collection policies and procedures which resulted
in reduced loan loss provisions, and ii) lower operating expenses
while we continued resizing our branch network, accelerating
headcount efficiencies and advancing on our digital transformation
strategy.”
“Our loan portfolio increased by mid-single digits sequentially
recovering market share versus last year, mainly driven by
mandatory credit lines to SMEs and short-term financing to
corporates. Personal loan origination, in turn, increased
consistently throughout the quarter reaching a record high in
October supported by the pick-up in economic activity. Total
deposits were up in the high-single digits quarter-on-quarter while
corporate checking accounts increased in the quarter with this
trend continuing into October. NIM however, was largely impacted by
lower yield on inflation-linked loans following the deceleration of
the price index during the quarter. Central Bank regulations on
volumes and prices of banking assets and liabilities also continue
to weigh on NIM. Importantly, our capital is hedged against
inflation through real estate investments, mortgages, and sovereign
bonds, although this quarter the lower inflation had a negative
impact on NIM.”
“In this context, we remain fully focused on executing on our
value-creation transformation strategy across Grupo Supervielle,
accelerating our strategic initiatives to capture efficiencies,
diversifying revenue sources beyond Argentina, and enhancing our
service model.”
“Starting with our digital and channel transformation strategy,
we continue introducing best-in-class technologies to extend
service hours and productivity while facilitating self-service
banking and expanding our serving offerings to multi-segments with
the vision of anytime anywhere banking. This also includes
increasing self-serving areas in some branches and converting
others to a full self-service format. Following the successful
results obtained from our Virtual Hub MVPs for individuals in the
province of San Luis, we are now starting to scale this hybrid
model to other regions and segments, expanding our footprint while
offering a superior customer experience combining the strength of
our face-to-face approach with the higher efficiencies of a virtual
hub. We additionally expanded our reach to new locations operating
100% virtually. Over the past four months we have also modernized
and expanded services to SMEs and related segments in 11 branches
that previously were fully-dedicated to serve senior citizens and
expect to complete the repositioning of another four branches by
year-end. Finally, we successfully relaunched our bank´s enhanced
mobile App with a 4.4 ranking in the PlayStore and 4.3 in the App
Store.”
“Our subsidiary IUDU is formally launching next week its mobile
digital savings account for individuals which will contribute to
attract low cost funding at this subsidiary. This is another step
in building wide range of digital banking services, insurance and
wellness offerings, while also diversifying revenues outside of
Argentina. On this front, we are advancing with two international
providers to offer B2C Wellbeing and Health services in Paraguay
with the goal of launching during 2Q22.”
“Throughout the years we have been very active in providing SMEs
with access to the local capital markets, and today hold a leading
position as coordinators and placement agents of bonds in this
market segment. Underscoring our strong commitment to sustainable
financing, this quarter we acted as placement agents for the first
bond issued by an SME in Argentina listed in the Social, Green and
Sustainable Panel of BYMA. Funds from this social bond will be
applied to finance internet access in several cities with scarce
connectivity infrastructure contributing to improve access to
knowledge, education, virtual work and entertainment, within the
framework of the pandemic.”
“While we are seeing some signs of improvement vis-a-vis the
prior year period with moderated growth in our loan book, we
continue to expect near-term profitability to remain impacted by
relatively weak loan demand and pressure on NIMs. At the same time,
our focus remains on building an ecosystem and advancing on our
transformation which requires investments and certain costs. This
strategy positions us to retain and enhance our current customer
relationships while attracting new digital clients and driving
operating efficiencies in the longer-term,” concluded Mr.
Supervielle.
Third quarter 2021 Highlights
Following the retrospective application of the Central Bank
communication A 7211 effective January 1, 2021, figures for all
quarters of 2020 have been restated.
Attributable Net loss of AR$60.2 million in 3Q21,
compared to a net gain of AR$1.2 billion in 3Q20 and a net loss of
AR$347.5 million in 2Q21.
In 3Q21 and 9M21, net income excluding non-recurring severance
charges in both periods, would have reached AR$241.4 million and
AR$923.2 million, with ROAE in real terms at approximately 2.0% and
2.6%, respectively.
QoQ performance was mainly explained by: i) a 4.2%, or AR$515
million, decline in net financial margin reflecting lower interest
income on inflation adjusted mortgage loans following lower
inflation in the quarter, together with a decline in interest
income on personal loans granted in the consumer finance business
since the non performing deferred loans stopped accruing in the
quarter, and increased interest expenses on higher volumes in
assets and deposits, and ii) an AR$471 million increase in income
tax. These negative impacts were partially offset by: i) a 29.3%,
or AR$596 million, decline in LLPs reflecting the Company’s IFRS9
expected loss models after a rebound in economic activity and some
industries improving their risk profile, ii) a 3.3%, or AR$313
million, decline in personnel and administrative expenses, iii) a
12.5%, or AR$231 million, lower impact from inflation adjustment
following the 160 bps deceleration in inflation in 3Q21 compared to
2Q21, and iv) a 3.1%, or AR$81 million improvement in net fee
income reflecting the repricing of products
ROAE was negative 0.5% in 3Q21 compared with positive
9.8% in 3Q20 and negative 2.8% in 2Q21. ROAE, excluding the
consumer finance lending business was 4.0% in 3Q21, a 450-bps gap
with as reported ROAE. This compares to gaps of 300 bps and 360 bps
in 2Q21 and 3Q20 respectively. ROAA was negative 0.1% in
3Q21 compared to positive 1.3% in 2Q21 and negative 0.4% in
2Q21.
Profit before income tax of AR$314.4 million in 3Q21
compared to gains before income tax of AR$1.2 billion in 3Q20 and a
loss of AR$444.4 million in 2Q21.
Excluding the impact of IAS29, Profit before income tax would
have been AR$2.3 billion in 3Q21 compared to AR$2.0 billion in 3Q20
and AR$1.5 billion in 2Q21.
Net Revenues of AR$13.4 billion in 3Q21, compared to
AR$17.5 billion in 3Q20 and AR$13.8 billion in 2Q21, down 23.4% YoY
and 2.8% QoQ.
Net Financial Income of AR$11.7 billion in 3Q21 down
23.1% YoY and 4.2% QoQ. Net Interest Margin of 16.6% was
down 480 bps YoY, and 132 bps QoQ. The AR$ NIM was 16.7%, down 583
bps YoY and 203 bps QoQ.
The total NPL ratio was 5.3% in 3Q21 and 4.4% in 2Q21.
The NPL ratio as of 3Q20 was 4.5%, although a more comparable
figure, excluding the Central Bank regulatory easing on debtor
classifications amid the pandemic (adding a 60-day grace period
before loans are classified as non-performing) and the suspension
of mandatory reclassification of customers that were non-performing
with other banks, was 5.1%.
Loan loss provisions (LLP) totaled AR$1.4 billion in
3Q21, down 65.4% YoY and 29.3% QoQ. Loan loss provisions, net,
which includes reversed provisions, amounted to AR$1.2 billion in
3Q21 compared to AR$1.8 billion in 2Q21, down 33.3% QoQ. The level
of provisioning reflects the Company’s IFRS9 expected loss models
and the nominal growth of the loan portfolio. The Coverage
ratio was 125.1% as of September 30, 2021, 164% as of June 30,
2021, and 181.3% as of September 30, 2020. Comparable Coverage
ratio as of 3Q20, excluding the Central Bank regulatory easing on
debtor classification, was 158%.
Efficiency ratio was 74.9% in 3Q21, compared to 60.5% in
3Q20 and 75.1% in 2Q21. The QoQ performance was mainly driven by a
3.1% decrease in expenses and a 2.8% decline in revenues. Excluding
non-recurring severance payments and early retirement charges, the
3Q21 and 2Q21 efficiency ratios would have been 71.4% and 72.0%
respectively.
Loans to deposits ratio of 53.3% compared to 60.6% as of
September 30, 2020, and 53.4% as of June 30, 2021.
Total Deposits increased 5.3% QoQ to AR$279.8 billion.
AR$ deposits rose 9.8% YoY and 6.6% QoQ. The QoQ increase in AR$
deposits was mainly driven by a 14.9%, or AR$26 bn, increase in
institutional funding reflecting liquidity management and the
increase in the loan portfolio, a 13.6%, or AR$5.8 bn, increase in
checking accounts from commercial customers and a 7.6%, or AR$6 bn,
seasonal decline in savings accounts from individuals. Average AR$
deposits increased 4.7% QoQ. Foreign currency deposits (measured in
US$) increased 10.5% YoY and 1.5% QoQ. As of September 30, 2021, FX
deposits represented 11.3% of total deposits.
Loans declined 4.9% YoY and increased 5.1% QoQ to
AR$149.1 billion.
Total Assets increased 2.4% YoY and 5.1% QoQ, to AR$368.7
billion as of September 30, 2021. The QoQ performance mainly
reflects the increase in loans to comply with mandatory credit
lines, higher balance of Repo transactions with the Central Bank,
and the increase in the US$ cash balance on higher liquidity. These
were partially offset by lower balances of government securities.
Average AR$ Assets were up 2.0%, or AR$6.0 bn, QoQ.
Common Equity Tier 1 Ratio as of September 30, 2021, was
14.1% decreasing 20 bps when compared to 2Q21 but increasing 10 bps
when compared to September 30, 2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211117006382/en/
Ana Bartesaghi Ana.bartesaghi@supervielle.com.ar
Grupo Supervielle (NYSE:SUPV)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Grupo Supervielle (NYSE:SUPV)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024