Grupo Supervielle S.A. (NYSE: SUPV, BYMA: SUPV) reported its earnings for the third quarter ending September 30, 2024. The company, a prominent financial services group headquartered in Argentina, continues to apply Hyperinflation Accounting in line with IFRS rule IAS 29.
Key Financial Metrics
| Metric | 3Q24 | 3Q23 | 2Q24 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Attributable Net Income | AR$8.9 billion | AR$29.3 billion | AR$19.2 billion | -69.7% | -53.6% |
| Net Income (9M24) | AR$89.8 billion | AR$58.3 billion | - | 54% | - |
| Revenues | AR$196.2 billion | AR$254.5 billion | AR$247.2 billion | -22.9% | -20.6% |
| ROAE | 4.9% | 18.5% | 10.4% | -73.5% | -52.9% |
| NIM | 24.8% | 29.2% | 36.3% | -4.4% | -11.5% |
Interpretation: The third quarter of 2024 presented challenges with significant decreases in both net income and revenues compared to the previous year and quarter. Despite a robust Net Interest Margin (NIM) of 24.8%, the impacts of lower inflation and reduced yields significantly affected financial income, though management maintained a positive outlook toward achieving its full-year ROE guidance.
Revenue Performance by Segment
| Segment | Performance | Guidance Comparison |
|---|---|---|
| Loan Book | Expanded 15% sequentially, 60% YTD | In line with growth strategies |
| Fee Income | Increased 28% sequentially | Exceeded expectations |
| Insurance Income | Up 11% | Maintained growth trajectory |
Interpretation: Revenue growth across major segments aligns with Supervielle's strategic focus. The strong expansion of the loan book and fee income exceeded expectations, signaling robust credit demand and adept management of inflation effects.
Key Developments and Operational Highlights
- Loan Portfolio Growth: The loan book expanded by 60 basis points year-to-date, maintaining a stable credit risk with an NPL ratio at a historic low of 0.8%.
- Asset Management: Assets under management reached US$1.2 billion, with IOL reinforcing its leading position in Argentina's online brokerage market.
- Executive Appointment: Gustavo Manriquez was appointed CEO of Banco Supervielle, effective October 1, bringing valuable experience to bolster growth strategies.
- Deposits Increase: The company's position strengthened with a 60 bps increase in market share and significant growth in USD deposits.
Management Commentary
Patricio Supervielle, Chairman & CEO, emphasized that while profitability faced a dip this quarter, the company anticipates a rebound in Q4 2024. The strategic focus on credit expansion and disciplined risk management is expected to sustain momentum and deliver the projected ROE for 2024. Mr. Supervielle highlighted the significant market share gains across various lending categories and the potential for future growth in Argentina's economic landscape.
Forward Guidance
Supervielle affirmed its 15% ROE guidance for fiscal year 2024, projecting continued growth despite macroeconomic challenges.
Stock Price Movement
Following the announcement, Grupo Supervielle's stock price increased by approximately 1.59%, reflecting positive market reception to the company's strategic vision and ongoing financial accomplishments.
In summary, while challenges have been apparent, Grupo Supervielle has showcased adaptability and strategic foresight, evident in its continued performance improvements and market position strengthening.
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