1Q22 profitability impacted mainly by
accelerated inflation and early retirement charges related to
transformation and efficiency programs. Continued improvement in
AR$ NIM up 70 bps QoQ
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-month period ended March 31,
2022.
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 first quarter 2022 results, Patricio
Supervielle, Grupo Supervielle's Chairman & CEO, noted:
“We delivered a 90 basis point sequential increase in net
interest margin during the first quarter, reflecting mainly higher
yields for both our loan book and Central Bank securities held in
our investment portfolio. The Bank subsidiary, on a stand-alone
basis, reported positive ROAE while we continue to advance our
digitalization strategy creating a more agile and efficient
customer centric operation. At IUDÚ, results were affected by
higher inflation and loan loss provisions coupled with a deep
reduction in personnel.
“Seasonally weak loan demand this quarter, particularly in
Factoring where we maintain a higher share, was compounded by
accelerated inflation that eroded consumers´ purchasing power and
by corporates with strong cash positions. Loan origination at IUDÚ
was also significantly lower as we tightened credit standards. In
contrast, we reported a sequential increase in our deposit base,
following liability management on the back of higher interest
rates.”
“Reflecting our focus on minimizing credit risk, asset quality
remained stable sequentially, both at our Bank subsidiary and IUDÚ,
with the total NPL ratio unchanged at 4.3%. Bank NPLs stood at 2.6%
in the quarter at comfortable asset quality levels.”
“Looking ahead, we expect to see GDP for the year expanding in
the low single digits mainly due to a statistical carry-over effect
from last year´s economic rebound. Further, while the government´s
recently signed agreement with the IMF was a positive development,
which requires the backing of political consensus to implement it.
We continue to cautiously monitor current dynamics in our
markets.”
“In this context, we remain relentlessly focused on executing on
capturing efficiencies and scaling our digital customer base, as we
strengthen our franchise through investments in data analytics and
value-added initiatives. Accordingly, we continue attracting
digital customers with good fundamentals as we ramp up monthly
customer acquisition. Importantly, our solid capital position which
is hedged against inflation through real estate investments,
mortgages, and sovereign bonds, provides a robust foundation to
weather the current environment as we look to a more positive macro
scenario in the future,” concluded Mr. Supervielle.
First quarter 2022 Highlights
Attributable Net loss of AR$377.6 million in 1Q22,
compared to a net gain of AR$293.6 million in 1Q21 and a net loss
of AR$770.7 million in 4Q21.
Excluding non-recurring severance charges, Supervielle would
have delivered net income of AR$445.6 million in 1Q22, with
adjusted ROAE in real terms at approximately 2.9%, compared to 0%
in previous quarter.
During 1Q22 Banco Supervielle on a stand-alone basis excluding
its participation in IUDÚ, reported a Net Income of AR$ 791.5
million, improving AR$887.0 from the loss of AR$ 95.5 million
reported in 4Q21.
ROAE was negative 2.5% in 1Q22 compared with positive
1.8% in 1Q21 and negative 4.9% in 4Q21.
ROAA was negative 0.3% in 1Q22 compared to positive 0.3%
in 1Q21 and negative 0.7% in 4Q21.
Loss before income tax of AR$435.6 million in 1Q22
compared to profit before income tax of AR$247.1 million in 1Q21
and loss of AR$115.2 million in 4Q21.
Net Revenues of AR$18.0 billion in 1Q22, compared to
AR$18.3 billion in 1Q21 and AR$17.2 billion in 4Q21, down 1.5% YoY
and increasing 4.8% QoQ. The YoY performance reflects higher cost
of funds impacted by regulatory minimum rates on time deposits,
weak credit demand and credit lines granted at subsidized rates,
and lower fee income in real terms impacted by inflation. QoQ
performance is explained by: (i) a flat Net Financial Margin
(+0.3%) and (ii) a decline in other operating expenses as 4Q21
reflected a loss due to the annual revaluation of fixed assets
together with higher turnover tax. These were partially offset by
lower Net Fee income mainly due to higher commissions paid, while
fees from the core business such as Deposit Accounts increased 6.9%
in the quarter.
Net Financial Income of AR$16.1 billion in 1Q22
increasing 1.3% YoY and 0.3% QoQ.
The Company’s capital is hedged against inflation through
different instruments, including mortgage loans and sovereign bonds
which impact net financial income with a 45-day lag; therefore, the
positive impact from accelerated inflation in the quarter had a
partial effect on net financial income and NIM.
Net Interest Margin (NIM) of 19.2% declined 14 bps YoY
and rose 91 bps QoQ. The AR$ NIM was 19.3%, up 22 bps YoY and 70
bps QoQ.
The total NPL ratio was 4.3% in 1Q22 flat from 4Q21,
despite the decline in the loan portfolio.
Loan loss provisions (LLP) totaled AR$2.0 billion in
1Q22, decreasing 7.1% YoY, but increasing 4.7% QoQ. Net loan loss
provisions, which includes reversed provisions in the quarter,
amounted to AR$1.4 billion in 1Q22 compared to AR$1.7 billion in
4Q21.
The Coverage ratio was 107.4% as of March 31, 2022,
109.9% as of December 31, 2021, and 205.2% as of March 31,
2021.
Efficiency ratio was 74.2% in 1Q22, compared to 71.9% in
1Q21 and 76.6% in 4Q21. Excluding severance payments and early
retirement charges, the efficiency ratio would have improved to
67.4% in 1Q22 from 69.7% in 4Q21.
Loans to deposits ratio of 48.9% compared to 54.8% as of
Mach 31, 2021, and 55.9% as of December 31, 2021. AR$ loans to AR$
deposits ratio was 48.8% as of March 31, 2022, declining from 53.7%
as of March 31, 2021, and 56.1% as of December 31, 2021.
Total Deposits of AR$341.3 billion increasing 1.9% QoQ
and 2.5% YoY. AR$ deposits amounted to AR$ 310.2 billion, rose 2.9%
QoQ and 7.1% YoY
Loans declined 8.5% YoY and 10.8% QoQ in real terms to
AR$166.9 billion, while average loan volumes declined 4.2% YoY and
7.6% QoQ. The AR$ Loan portfolio amounted to AR$151.4 billion,
declining 2.6% YoY and 10.6% QoQ, while average AR$ loans rose 0.5%
YoY and declined 6.6% QoQ.
Common Equity Tier 1 Ratio as of March 31, 2022, was
13.8% improving 110 bps when compared to 4Q21 and remained flat
from March 31, 2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220516006052/en/
Ana Bartesaghi Ana.bartesaghi@supervielle.com.ar
Grupo Supervielle (NYSE:SUPV)
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