BUENOS AIRES, Argentina--(BUSINESS WIRE)--Grupo Supervielle S.A. (NYSE: SUPV; BASE: SUPV), (“Supervielle” or the “Company”) a universal financial services group headquartered in Argentina with a nationwide presence, today reported unaudited results for the three months period ended March 31, 2017. All figures presented throughout this document are expressed in nominal Argentine pesos (AR$) and all financial information has been prepared in accordance with Argentine Banking GAAP.
First Quarter 2017 Highlights
- Net income of AR$381.9 million, up 118.6% YoY, and down 28.3% QoQ. ROAE of 21.8% in 1Q17. This compares with ROAE of 27.5% in 1Q16 and 31.3% in 4Q16. ROAA of 2.6% in 1Q17, compared to 2.1% in 1Q16 and 4.1% in 4Q16.
- Total gross loans, including the securitized loan portfolio, increased 62.5% YoY and 6.0% QoQ to AR$41.2 billion. Total balance sheet loans grew at a higher rate of 71.0% YoY and 6.6% QoQ, reflecting the anticipated slowdown in securitization.
- NIM of 18.7% in 1Q17, contracting by 130 bps YoY and 220 bps QoQ, while AR$ NIM on the Company’s Loan Portfolio (excluding foreign trade and US$ loans), which concentrates 85% of the portfolio, rose 240 bps YoY to 23.4% in 1Q17, despite the decline in the BADLAR interest rate.
- Non-performing loan ratio increased 20 bps to 2.9% in 1Q17 from 2.7% in 1Q16 and 10 bps from 2.8% in 4Q16.
- The efficiency ratio improved to 67.5% in 1Q17 compared with 73.8% in 1Q16, but deteriorated from 64.5% in 4Q16 due to seasonality.
- Proforma Consolidated Common Equity Tier 1 Ratio of 12.0% in 1Q17 compared to 7.2% in 1Q16 and 12.3% in 4Q16. Equity to Asset ratio of 11.3% in 1Q17 compared to 7.3% in 1Q16 and 13.0% in 4Q16.
CEO Message
Commenting on first quarter results, Patricio Supervielle, Grupo Supervielle’s Chairman and CEO, noted: "We reported solid results in the first quarter, as we continued to execute our profitable growth strategy. We have a healthy balance sheet and over the past year have successfully raised equity and debt in international capital markets and are deploying these proceeds to drive loan growth - up 62.5% YoY, significantly above market.”
“As further evidence of progress achieved in implementing our strategy, we more than doubled net income year-on-year. On a QoQ basis, a one-time non-recurring item in each 4Q16 and 1Q17, along with seasonality, impacted the comparability of results. As a reminder, our results tend to be lower in the first quarter and accelerate towards the second half of the year. Excluding these non-recurring items, net income for the quarter would have fallen only 5.8% sequentially.”
“We are also making progress on our initiatives to step up digital innovation and build out our core product leadership into integral customer relationships. An important step was our launch of the first SME-dedicated Check Depositing and Discounting App in Argentina, introducing a new cash management solution during the quarter. Given the attractiveness of this segment, we recently introduced the exclusive “Visa Distribution Vinos” credit card as we took another step towards developing our attractive value proposition in the dynamic winery industry in the province of Mendoza, renewing our leadership commitment in this province. We are also pleased with the launch of an exclusive strategic alliance with the leading online real estate search portal in the country to expand our reach in the mortgage segment beyond our current client base.”
“Looking ahead, we remain cautiously optimistic of Argentina’s economic recovery, despite slightly higher than expected inflation in the first quarter, and maintain our guidance for 2017. We remain vigilant on asset quality, closely monitoring our risk profile, while we continue to drive profitable growth. We are confident in our ability to deliver on our growth strategy as we continue to maximize opportunities we see in our core businesses - SMEs, middle market, retail and consumer finance while leveraging our under-utilized infrastructure.”
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Financial Highlights & Key Ratios |
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| (In millions of Argentine Ps.) | % Change | |||||||||||||||||||||
| INCOME STATEMENT | 1Q17 | 4Q16 | 3Q16 | 2Q16 | 1Q16 | QoQ | YoY | |||||||||||||||
| Gross Financial Margin | 1,927.8 | 1,951.6 | 1,566.4 | 1,304.4 | 1,105.6 | -1.2% | 74.4% | |||||||||||||||
| Service Fee Income, Net | 757.0 | 717.5 | 635.4 | 555.3 | 538.6 | 5.5% | 40.6% | |||||||||||||||
| Income from Insurance activities | 110.0 | 129.9 | 194.0 | 164.4 | 117.9 | -15.3% | -6.7% | |||||||||||||||
| Loan Loss Provisions | -342.6 | -316.7 | -261.4 | -295.9 | -183.6 | 8.2% | 86.6% | |||||||||||||||
| Administrative expenses | -1,886.1 | -1,805.8 | -1,496.3 | -1,458.7 | -1,299.6 | 4.4% | 45.1% | |||||||||||||||
| Income before Income Tax | 567.6 | 669.3 | 624.3 | 278.8 | 239.5 | -15.2% | 137.0% | |||||||||||||||
| Net Income | 381.9 | 532.3 | 436.4 | 167.9 | 174.7 | -28.3% | 118.6% | |||||||||||||||
| Earnings per Share (AR$) | 1.1 | 1.5 | 1.2 | 0.6 | 0.7 | |||||||||||||||||
| Earnings per ADRs (AR$) | 5.3 | 7.3 | 6.0 | 2.8 | 3.5 | |||||||||||||||||
| Outstanding Shares (in millions) | 363.8 | 363.8 | 363.8 | 363.8 | 249.0 | |||||||||||||||||
| BALANCE SHEET | mar 17 | dec 16 | sep 16 | jun 16 | mar 16 | QoQ | YoY | |||||||||||||||
| Total Assets | 64,519.0 | 53,206.0 | 44,433.7 | 40,960.0 | 34,672.3 | 21.3% | 86.1% | |||||||||||||||
| Average Assets1 | 59,578.5 | 51,421.4 | 43,174.3 | 37,881.6 | 33,548.1 | 15.9% | 77.6% | |||||||||||||||
| Total Loans & Leasing | 39,803.7 | 37,338.8 | 31,751.7 | 27,409.4 | 23,283.0 | 6.6% | 71.0% | |||||||||||||||
| Securitized Loan Portfolio | 1,361.3 | 1,483.9 | 1,512.8 | 2,040.4 | 2,049.5 | -8.3% | -33.6% | |||||||||||||||
| Total Portfolio 2 | 41,165.1 | 38,822.7 | 33,264.5 | 29,449.9 | 25,332.5 | 6.0% | 62.5% | |||||||||||||||
| Total Deposits | 38,826.8 | 35,897.9 | 30,417.2 | 27,652.2 | 24,346.7 | 8.2% | 59.5% | |||||||||||||||
| Shareholders’ Equity | 7,313.4 | 6,931.6 | 6,413.5 | 5,997.0 | 2,548.4 | 5.5% | 187.0% | |||||||||||||||
| Average Shareholders’ Equity1 | 7,009.0 | 6,807.9 | 6,114.3 | 4,302.2 | 2,537.4 | 3.0% | 176.2% | |||||||||||||||
| KEY INDICATORS | 1Q17 | 4Q16 | 3Q16 | 2Q16 | 1Q16 | |||||||||||||||||
| Profitability & Efficiency | ||||||||||||||||||||||
| ROAE | 21.8% | 31.3% | 28.6% | 15.6% | 27.5% | |||||||||||||||||
| ROAA | 2.6% | 4.1% | 4.0% | 1.8% | 2.1% | |||||||||||||||||
| Net Interest Margin | 18.7% | 20.8% | 20.0% | 20.3% | 20.0% | |||||||||||||||||
| Net Financial Margin | 17.7% | 20.4% | 18.7% | 18.4% | 17.4% | |||||||||||||||||
| Net Fee Income Ratio | 31.0% | 30.3% | 34.6% | 35.6% | 37.3% | |||||||||||||||||
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Net Fee Income as a % of |
46.0% | 46.9% | 55.4% | 49.3% | 50.5% | |||||||||||||||||
| Efficiency Ratio | 67.5% | 64.5% | 62.5% | 72.1% | 73.8% | |||||||||||||||||
| Liquidity & Capital | ||||||||||||||||||||||
| Loans to Total Deposits3 | 102.5% | 104.0% | 104.4% | 99.1% | 95.6% | |||||||||||||||||
| Liquidity Coverage Ratio (LCR)4 | 126.3% | 128.0% | 104.1% | 137.3% | 118.9% | |||||||||||||||||
| Total Equity / Total Assets | 11.3% | 13.0% | 14.4% | 14.6% | 7.3% | |||||||||||||||||
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Regulatory Capital/ Risk |
12.3% | 12.5% | 13.0% | 14.0% | 9.3% | |||||||||||||||||
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Proforma Consolidated Tier 1 |
12.0% | 12.3% | 12.6% | 13.5% | 7.2% | |||||||||||||||||
| Risk Weighted Assets / Total Assets | 83.0% | 92.4% | 101.2% | 98.5% | 101.4% | |||||||||||||||||
| Asset Quality | ||||||||||||||||||||||
| NPL Ratio | 2.9% | 2.8% | 3.0% | 3.1% | 2.7% | |||||||||||||||||
| Allowances as a % of Total Loans | 2.5% | 2.4% | 2.5% | 2.6% | 2.3% | |||||||||||||||||
| Coverage Ratio | 87.0% | 87.1% | 83.7% | 83.2% | 83.9% | |||||||||||||||||
| Cost of Risk | 3.9% | 3.9% | 3.7% | 5.0% | 3.4% | |||||||||||||||||
| MACROECONOMIC RATIOS | ||||||||||||||||||||||
| Retail Price Index (%)7 | 7.1% | 6.2% | 2.7% | 15.5% | 11.9% | |||||||||||||||||
| Pesos/US$ Exchange Rate | 15.38 | 15.85 | 15.26 | 14.92 | 14.58 | |||||||||||||||||
| Badlar Interest Rate (eop) | 19.1% | 19.9% | 22.2% | 26.6% | 30.8% | |||||||||||||||||
| OPERATING DATA | ||||||||||||||||||||||
| Customers (in millions) | 2.2 | 2.2 | 2.2 | 2.2 | 2.1 | |||||||||||||||||
| Access Points | 321 | 325 | 325 | 325 | 325 | |||||||||||||||||
| Employees | 5,049 | 4,982 | 4,911 | 4,910 | 4,884 | |||||||||||||||||
1. Avg. total Assets and avg. shareholder´s equity calculated on a daily
basis
2. Total Portfolio: Loans and Leasing before Allowances,
Including Securitized Portfolio.
3. On Balance Sheet Loans/Total
Deposits.
4. This ratio includes the net liquidity held at the
holding company level.
5. This ratio applies only to the Bank and
CCF on a consolidated basis.
6. Includes $665 million Tier1 Capital
retained at the holding company level available for injection in
subsidiaries.
7. Source: City of Buenos Aires
8. The reduction
in the number of Access Points as of March 2017 reflects the decrease in
5 microfinance branches (following the sale of Cordial Microfinanzas)
and a new consumer finance branch opened inside a Walmart store.
