Earning Date, Transcript Summary & Report

Loan Book Expansion: Grupo Supervielle experienced significant transformation in 2024, focusing on profitable growth and digital transformation, which led to a 27% quarter-over-quarter and 107% year-on-year expansion of their loan book.

Market Share Expansion: The company gained 90 basis points of market share, with higher margin retail loans increasing to 48% of the total portfolio, up from 44% in the prior quarter and 40% a year ago.

Deposit Base Expansion: The deposit base grew 7% sequentially, with U.S. dollar deposits reaching record levels, up 178% year-over-year, indicating strong customer confidence and growth in the deposit segment.

Asset Quality and Growth: The non-performing loan (NPL) ratio remained low at 1.3%, demonstrating strong asset quality despite slight increases, and the CTE1 ratio of 16.1% positions the company well for future growth.

Profitability Metrics Overview: Net interest margin stood at 25%, with an annual return on equity (ROE) of 15.7%, aligning with the company's profitability targets for the year.

Digitization Strategy Success: The successful implementation of a major digitization strategy has enhanced the operating model, making the institution more agile and tech-driven, ready to scale operations effectively.

Digital Brokerage Leadership: Invertironline solidified its position as Argentina's leading digital retail brokerage platform, contributing 15% of Banco Supervielle's net income and 20% of total fee income, showcasing its strategic relevance.

Asset Growth and Adoption: IOL's assets under custody reached $1.7 billion, up 44% year-on-year, reflecting strong adoption of the platform and robust transaction activity, which increased by 67% year-on-year.

Loan and Deposit Growth: The company anticipates continued growth in loans and deposits for 2025, with expectations of a 40% increase in deposits and a gradual normalization of the NPL ratio, indicating a positive outlook for the upcoming year.

Deposit Decline Challenges: The company experienced a decline in year-on-year deposits by 6%, indicating potential challenges in maintaining customer funds despite a sequential growth of 7%.

Non-Performing Loan Forecast: The non-performing loan (NPL) ratio is expected to rise to a range of 2% to 2.2% in 2025, reflecting anticipated increases in lending activity and a shift in loan mix, which could indicate future asset quality concerns.

Net Interest Margin Decline: Net interest margin (NIM) is projected to decrease to a range of 18% to 20% in 2025, down from 24.8% in Q4 2024, suggesting potential pressure on profitability due to lower inflation and increased leverage.

Increased Operating Expenses: Operating expenses increased by 1% sequentially in Q4 2024, with a notable 15% rise in costs related to advertising initiatives, which may indicate a focus on growth at the expense of cost control.

NPL Ratio Normalization Risks: The company anticipates a gradual normalization of the NPL ratio, which could signal a riskier lending environment as they expand their loan portfolio, particularly in retail and corporate loans.