Banco Supervielle Reports 3Q24 Financial Results Amid Inflation Changes

Banco Supervielle's Financial Performance in 3Q24: Key Highlights

Banco Supervielle reported a shift in its asset portfolio towards private-sector loans, resulting in a reduced investment portfolio. The company faced a 1.8% increase in personnel and administrative expenses, totaling AR$2.2 billion. Excluding specific charges, administrative expenses and depreciation would have decreased by 4.1% sequentially.

Financial Metrics

• Revenues for 3Q24 were AR$196.2 billion, a decrease from AR$254.5 billion in 3Q23 and AR$247.2 billion in 2Q24. However, 9M24 revenues showed a 30.7% increase compared to 9M23.
• Net Financial Income in 3Q24 was AR$160,988.1 billion, down 31.6% YoY and 29.4% QoQ. This decline was influenced by lower inflation and a stable rate environment reducing yields.
• Net Interest Margin (NIM) was 24.8%, lower than 29.2% in 3Q23 and 36.3% in 2Q24.

Loan and Deposit Performance

• The total Non-Performing Loan (NPL) ratio was 0.8% in 3Q24, showing improvement from 1.7% YoY and remaining stable QoQ.
• Loan loss provisions totaled AR$10.3 billion, decreasing 23.4% YoY and 21.5% QoQ.
• Total deposits reached AR$2,751.5 billion, marking a 183.9% YoY and 31.3% QoQ increase in nominal terms.
• Loans grew 318.6% YoY and 28.6% QoQ in nominal terms, reaching AR$1,605.4 billion.

Capital and Efficiency Ratios

• The Common Equity Tier 1 Ratio (CET1) as of September 30, 2024, was 19.2%, up 240 bps YoY but down 210 bps QoQ.
• The efficiency ratio was 64.3% in 3Q24, higher than 51.7% in 3Q23 and 50.9% in 2Q24.
• The leverage ratio decreased to 5.4x from 6.2x YoY, indicating room for growth.

Conclusion

Banco Supervielle experienced fluctuations in its financial metrics due to changes in inflation and monetary policies. Despite a challenging environment, the bank managed to maintain a stable credit risk profile and saw substantial growth in its loan portfolio.